Valuation

What is Enterprise Value (EV)?

Enterprise value represents the total theoretical takeover price of a company — including its equity, debt, and minus its cash holdings.

Formula

EV = Market Cap + Total Debt - Cash & Equivalents

How to Interpret

EV gives a more complete picture than market cap alone because it accounts for the company's debt obligations.

Typical Ranges

Compare EV-based ratios (EV/EBITDA, EV/Sales) rather than EV in isolation.

Learn More in the Academy

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter Indian stocks by Enterprise Value.

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