Enterprise value is the sum of a company's market capitalization and total debt, less its cash and cash equivalents. It is a metric considered by many to be more accurate than market capitalization.

The enterprise value (EV) formula measures the total value of a company, considering both its equity and debt. It reflects what it would cost to acquire the business, including adjustments for cash ...

Many investors and analysts use a company's market capitalization to measure its value. However, some would argue enterprise value is a more holistic measure of a company's value than the market cap.