Executive & Board / Corporate Finance

Enterprise Value EV (TEV, Firm Value)

What it would cost to buy the whole business, equity plus the debt you assume, minus the cash you inherit.

The fork, why two teams get different numbers

EV is "market cap plus net debt," but every term forks.

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Reference: FASB ASC 842 (Leases) · CFA Institute (enterprise value and valuation multiples) · SEC Regulation S-X (balance-sheet classification)