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What is a 'Total Enterprise Value  TEV'
A total enterprise value (TEV) is 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.
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What is the difference between enterprise value and equity value?
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