Enterprise Value EV
The total value of a business — market cap plus debt minus cash — i.e. what it would cost to buy it outright.
What it is
Enterprise value estimates the full takeover cost of a company, not just its stock. It starts with market capitalization, adds total debt (and items like preferred stock and minority interest), then subtracts cash and cash equivalents. The logic: an acquirer assumes the debt but gets to use the cash on hand.
Why it matters
EV lets you compare companies on equal footing regardless of how they are financed, which is why valuation multiples like EV/EBITDA and EV/Sales use it instead of market cap. The common pitfall is comparing P/E ratios across firms with very different debt loads — EV-based multiples correct for that.
How it's calculated
Add market capitalization and total debt (plus preferred equity and non-controlling interest), then subtract cash and short-term investments.
How Quintarthai uses it
Enterprise value and EV-based multiples (EV/EBITDA, EV/Sales) are shown under the enterprise-value group on the Ratios tab of a stock's deep-analysis page.