Skip to main content
Return to homepage
  • Free Trial
  • Free Trial
  • Plans
    • Plans for Individuals
    • Plans for Teams
    • Plans for Clients
    • Plans for Enterprise
  • Solutions
    • Self Educators
    • Small Business
    • Industry Associations
    • Accounting Firms
    • Franchise Groups
    • Finance Brokers
    • Corporations
    • Business Schools
  • More
    • About
    • Features
    • Experts
    • Blog
    • Media
    • Press
    • Contact
  • Support
  • Login
    • Watch
    • Admin

Home Definitions

What is Enterprise Value? Definition or Meaning

Posted by Bizversity

Buying a business will make you learn about a lot of financial terms and enterprise value is a very important one in this case. This number is the total value of the business including any debts it may have. This value will then be offset by any cash equivalents they may have.

For example…

If Tom were to buy Jerry’s cheese business; Firstly, that would make for a great cartoon and secondly, he would buy the business based on its enterprise value. This amount would be the value of the business plus any debts Jerry may have. In a bit of rare, good news for Tom, Jerry had $20 worth of cash equivalents, offsetting the total value, the cash and cash equivalents

Bizversity
Bizversity

  • Facebook
  • YouTube
  • Twitter
  • LinkedIn
  • Instagram

Our Mission is to grow the people that move the world forward. Because business people change things. They learn, they create, they build, they disrupt. And when they do, they influence the people around them and the world becomes a better place. So if you are an entrepreneur, business leader, executive or startup, and you want to grow, welcome to Bizversity.

  • About
  • Blog
  • Features
  • Tutorials
  • Media
  • Press
  • Careers
  • Definitions
  • Questions
  • Support
  • Contact

Copyright © 2023 Bizversity
  • Privacy Policy
  • Disclaimer
  • Terms of Service
  • Website Terms of Use