Metrics & KPIsEnterprise Value / Takeover Value
Definition
<a href="http://beginnersinvest.about.com/od/financialratio/a/aa052405.htm">Enterprise value</a> is a figure that, in theory, represents the entire cost of a company if someone were to acquire it. Enterprise value is a more accurate estimate of takeover cost than market capitalization because it takes includes a number of important factors such as preferred stock, debt, and cash reserves that are excluded from the latter metric.
Tags
cash, capital, debt, cost, enterprise