Definition: What is Enterprise Value (EV)?
Enterprise Value (EV) also known as firm value. It is used to measure the worth of the company by comparing its stock price, outstanding debt, cash and equivalent in the company’s event sale. In other words, it measures, how much purchasing a company should pay to buy 1 more company.
There are two ways which may be adopted by the companies for the growing of their business. Some companies grow their products and reach to new customers for the expansion of their business.
This may be a slow and costly way but it is a great way for business. through second-way companies find successful companies and purchase those companies for the expansion of the business.
Financial Ratio is a forum where you will learn about all ratios definitions and formulas.