Understanding Enterprise Value: A Key Metric
Enterprise value is a crucial metric for business valuation. It’s used by 98% of Fortune 500 companies. This statistic highlights its importance in assessing a company’s worth1. Enterprise value offers a complete view of a business’s financial health. It considers both equity and debt. This metric is more comprehensive than market capitalization, which only looks at outstanding shares. Enterprise value is vital when evaluating potential merger and acquisition targets. It reflects the actual cost of acquiring a company. This makes… Read More »Understanding Enterprise Value: A Key Metric