Enterprise Value (EV)
Enterprise Value (EV) is a measure of a company’s total value as if it were to be acquired, calculated as market capitalization plus debt, minority interest, and preferred equity, minus cash and cash equivalents.
Example: For example, if a company has a market capitalization of $500 million, debt of $200 million, minority interest of $20 million, preferred equity of $30 million, and cash of $40 million, its EV would be $710 million.
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