Financials
Enterprise value
A market-based measure that adds debt and subtracts cash from equity market value under common definitions.
What it means
Enterprise value is often used to compare companies with different capital structures. Inputs and adjustments can vary, especially for financial companies or complex balance sheets.
Example
Two companies with the same market cap can have different enterprise values if one carries more net debt.
What not to infer
Enterprise value is not a price target or full valuation model by itself.