Total Enterprise Value - TEV
Definition of 'Total Enterprise Value - TEV'
A valuation measurement used to compare companies with varying levels of debt. This is calculated as:
TEV = Market Capitalization + Interest Bearing Debt + Preferred Stock - Excess Cash.
Investopedia explains 'Total Enterprise Value - TEV'
Some people just use market capitalization as the value of a company, but some companies issue more equity than others, so this is why we include debt.