A comprehensive measure of a company's total value, calculated as market capitalization plus total debt minus cash and cash equivalents. It represents the theoretical takeover price of the entire business.
'Enterprise' from Old French 'entreprendre' meaning to undertake, 'value' from Latin 'valere' meaning to be worth. The concept emerged in 1980s corporate finance as analysts needed better metrics for comparing companies with different capital structures in M&A analysis.
Enterprise value is what you'd actually pay to own the entire company - not just the stock price! If you bought all the shares (market cap) but also inherited the debt and got to keep the cash, EV shows your true cost. It's why debt-heavy companies can look cheap on P/E but expensive on EV multiples.
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