Enterprise Value Calculation (with link)Calrifying confusion on Enterprise Value Calculation
Enterprise Value Formula and Calculation:
EV=MC+Total Debt−C
where:
MC=Market capitalization; equal to the current stock
price multiplied by the number of outstanding stock shares
Total debt=Equal to the sum of short-term and
long-term debt
C=Cash and cash equivalents; the liquid assets of
a company, but may not include marketable securities