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.


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BREAKING DOWN '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.

  1. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  2. Enterprise Value (EV)

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  3. Enterprise-Value-To-Revenue Multiple ...

    A measure of the value of a stock that compares a company's enterprise ...
  4. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  5. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  6. Security

    A financial instrument that represents an ownership position ...
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