Glossary

With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.

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Enterprise Value

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Category: Business Valuation

Definition:

Enterprise value (EV) is a financial metric used in mergers and acquisitions (M&A) to represent the total value of a company. It takes into account both the equity and debt components of a company’s capital structure. Enterprise value is a comprehensive measure because it considers not only the market value of a company’s equity but also its outstanding debt and, in some cases, preferred stock. The formula for calculating enterprise value (EV) is Market Capitalization + Total Debt – Cash and Cash Equivalents.