What is Enterprise Value?

                                                                    

Enterprise Value

Enterprise value, often abbreviated as EV denotes the difference between the sum of a company's Common Shares,  Preferred Shares, Market Value of Debt, and Minority Interest and its Cash/Cash Equivalents. This is simply presented as the sum of the market value of its net debt and equity when deducing the WACC. The succeeding diagram depicts how the market value of net debt and equity constitute EV.