enterprise value

enterprise value definition - business

enterprise value

The market value of all of a firm's debt and equity. For example, if a company has $2 million of outstanding debt currently valued at 90% of face value and 100,000 shares of common stock trading for $50 per share, the enterprise value is (0.9 × $2 million) + (100,000 shares × $50), or $6.8 million.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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