This app let you calculate Enterprise Value of a company.Enterprise value (EV) is a measure of a company’s total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company’s balance sheet.
This app helps many economists to measure the worth of a company.How dept and yearly income effects in the actual value of company is an important thing to measure.So these economic indicators helps to plan company growth for future perspective.This ap is also an important education tool for students who really want to study Enterprise value.So you must know the definition of Enterprise value and its reality from practical perspective.
Enterprise value (EV) is an indicator of how the market attributes value to a firm as a whole. Enterprise value is a term coined by analysts to discuss the aggregate value of a company as an enterprise rather than just focusing on its current market capitalization or market cap.
Enterprise Value Calculation can be summarized as follows:
Simply put, EV is the sum of a company’s market cap and its net debt. To compute the EV, total debt—both short- and long-term—is added to a company’s market cap, then cash and cash equivalents are subtracted.
Market capitalization is the share price multiplied by the number of outstanding shares. So, if a company has 10 million shares, each currently selling for $25, the market capitalization is $250 million. This number tells you what you would have to pay to buy every share of the company. Therefore, rather than telling you the company’s value, market cap simply represents the company’s price tag.