Enterprise Value
Definition
What is Enterprise Value?
The value of a company's operations attributable to debt and equity investors, commonly market capitalisationThe market value of a company's outstanding shares, calculated as share price multiplied by shares outstanding. plus net debtInterest-bearing debt minus cash and cash equivalents. and other claims.
Example in practice
How This Looks in Practice
A ₦100 billion market cap plus ₦20 billion net debt gives roughly ₦120 billion enterprise value.
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Related Terms
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.