Introduction to Enterprise value and Equity Value

Enterprise value is the sum of all ownership interests in a company and claims on its assets from both debt and equity holders. Enterprise value represents the full cost of acquisition of a company, It can be used to value the obligations to settle or the costs to pay for a company who wants to takeover or acquire another. Enterprise value can be derived by summing up the equity value, total debt, preferred stock and non-controlling interests and then deducting cash and cash equivalents. [Read more…] about Enterprise Value vs Equity Value