what is enterprise value vs market value 
enterprise value is the total value of a company while market value is the value of its shares on the stock market market capitalization is the total value of all sthares on the stock market the bottom lineenterprise value estimates a company s total value generally used by other companies when considering a merger or acquisition investors can also use ev to estimate a company s size and worth to help them evaluate their stock choices ev is best used with other metrics for valuating a stock some popular ratios are ev sales and ev ebitda correction dec 17 2022 the article has been updated from a previous version that incorrectly omitted debt when describing the formula for calculating enterprise value debt is a necessary element of the formula 