Enterprise value (EV) is the total value of a business, including equity, debt, and cash. It represents what a buyer would need to pay to acquire the entire company and is the most common valuation metric used in M&A transactions.
Definition
Understanding Enterprise Value
Enterprise value (EV) is the total value of a business, including equity, debt, and cash. It represents what a buyer would need to pay to acquire the entire company and is the most common valuation metric used in M&A transactions.
Related Concepts
Related Terms
- EBITDA
- Valuation multiples
- Exit planning
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