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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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. |
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