Enterprise Value (EV)
Definition - What does Enterprise Value (EV) mean?
Enterprise value is a useful metric for strategic and financial buyers because it provides a business valuation metric for companies of all different sizes and industries, which can then be compared and benchmarked. The most common way to calculate enterprise value is to apply a multiple to EBITDA.
Divestopedia explains Enterprise Value (EV)
For most private business owners, although it is important to know the enterprise value, it is even more important to know the equity value of the company. The equity value will actually tell you how much you are likely to walk away with after you sell your company and pay off all the debt.
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