Total Enterprise Value - TEV

Filed Under » ,
Dictionary Says

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 Says

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.

Video Definition

Related Definitions

  •

    Debt

    An amount of money borrowed by one party from another. Many corporations/individuals use debt as a method for making large purchases that they could not afford under normal ...
    Read More »

  • Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of ...
    Read More »

  • Preferred Stock

    A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before ...
    Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions