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ADVFN HomeHelpFinancialsDeeper AnalysisFINANCIAL RATIOS - Solvency RatiosEnterprise Value (EV)
FINANCIAL RATIOS - Solvency Ratios
  Enterprise Value (EV)
  CFO/Sales
  CFO/Attributable Profit
  CFO/Assets
  CFO/Debt
  Total Debt/Equity Market Value
  Total Debt/Sales
  Total Debt/Pre-Tax Profit
  Total Debt
  Total Debt/Net Curr Assets

Enterprise Value (EV)

A measure of what the market believes a company's ongoing operations are worth.

Enterprise value reflects the actual purchase price anyone acquiring a company would have to pay. Therefore, one should think of enterprise value as the theoretical takeover price. The formula is:

(market capitalisation + creditors long + creditors,other + subordinated loans + insurance funds + preference, minorities) - cash & equivalents