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URL:  http://boards.fool.com/hi-pondee-enterprise-value-is-a-way-of-looking-at-24084433.aspx

Subject:  Re: Enterprise "Value"? Date:  5/10/2006  12:53 PM
Author:  TMFDoraemon Number:  758 of 766

Hi Pondee,

Enterprise value is a way of looking at what the total value of the company would be to you if you were to acquire it today. The market cap represents the current value of the equity, but if you acquired the company you'd also receive the cash on its books and take on the debt as well. So enterprise value = market cap + debt - cash.

Best,

Nate
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