Finance & Accounting / Corporate Finance
Enterprise Value EV
The total price to buy the whole business, equity plus the debt you inherit, minus the cash you get to keep, the capital-structure-neutral value that valuation multiples hang on.
The fork, why two teams get different numbers
Everyone agrees EV starts with market cap plus net debt, and everyone builds it slightly differently after that.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: CFA Institute equity valuation; non-GAAP analytical measure, no authoritative standard; FASB ASC 842 (Leases)