ENTERPRISE VALUE Definition

Bookmark and Share

ENTERPRISE VALUE (EV) is a measure of a companys value. Enterprise value is calculated by: market capitalization plus debt and preferred shares minus cash and cash equivalents. In effect, enterprise value is the theoretical takeover price, i.e., in the event of a buyout an acquirer would have to take on the companys debt but would pocket its cash.

Learn new Accounting Terms

ERROR OF OMISSION is an error which occurs as a result of an action not taken. In accounting, the error occurs when both the entries required for a transaction are completely omitted from the books.

CURRENCY TRANSLATION see FOREIGN CURRENCY TRANSLATION.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.