Definition
Enterprise Value (EV)
The total economic value of the business, independent of capital structure.
EV = equity value + debt − cash + minority interest + preferred equity. It is the value being negotiated in most M&A transactions, with the equity value derived afterwards by adjusting for the actual debt-and-cash position at closing. EV/EBITDA and EV/Revenue are the two multiples quoted most often in private-market deals.
See also