Enterprise Value

This is the value of an enterprise (business) as a whole and does not adjust for any debt or cash held in the business. This would be a value assigned to a business or company on a ‘debt free cash free basis’. Meaning that if there were no debt or cash balance in the business or company, the value would be the enterprise value.

















Transactions may take place based on enterprise value if the seller were to take on the debt and cash balance after sale. Deducting debt and adding cash to the enterprise value would give the equity value.