ENTERPRISE VALUE Definition

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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.

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PARENT COMPANY is a company of which others are subsidiaries.

WASTAGE see SCRAP.

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