Enterprise Value

Noun · Startup & VC

Definitions

  1. A valuation measure that reflects the total value of a business, typically including equity value plus debt and minus cash. It is often used in acquisitions and public-company comparisons to get a fuller picture than market cap alone.

    In plain English: A measure of a company's total value, accounting for debt and cash as well as equity.

    Example: "The banker framed the offer in terms of enterprise value, not just headline equity price."

Related Terms