what is enterprise value ev 
enterprise value ev measures a company s total value often used as a more comprehensive alternative to market capitalization ev includes in its calculation not only the market capitalization of a company but also short term and long term debt and any cash or cash equivalents on the company s balance sheet michela buttignol investopediacomponents of enterprise value ev enterprise value uses figures from a company s financial statements and current market prices the components that make up ev are 1enterprise value formula and calculatione v m c t o t a l d e b t c where m c market capitalization equal to the current stock price multiplied by the number of outstanding stock shares t o t a l d e b t equal to the sum of short term and long term debt c cash and cash equivalents the liquid assets of a company but may not include marketable securities begin aligned ev mc total debt c textbf where mc text small market capitalization equal to the current stock text small price multiplied by the number of outstanding stock shares total debt text small equal to the sum of short term and text small long term debt c text small cash and cash equivalents the liquid assets of text small a company but may not include marketable securities end aligned ev mc total debt cwhere mc market capitalization equal to the current stockprice multiplied by the number of outstanding stock sharestotal debt equal to the sum of short term andlong term debtc cash and cash equivalents the liquid assets ofa company but may not include marketable securities to calculate market capitalization if not readily available online you would multiply the number of outstanding shares by the current stock price next total all debt on the company s balance sheet including both short term and long term debt finally add the market capitalization to the total debt and subtract any cash and cash equivalents from the result 