Fig. 01 · Glossary
Enterprise Value
Also known as EV
Definition
Enterprise Value, or EV, represents the value of the operating business before deciding how that value is split between debt and equity holders. In transaction work, EV is the base for valuation multiples, purchase price discussion, and debt-free cash-free mechanics.
Enterprise value is not the same as proceeds to shareholders. Debt, cash, working capital, transaction expenses, preferences, and earnouts can all change what owners receive.
Operators should understand the EV bridge before a buyer turns it into a negotiation.
Human Renaissance glossary · operator-grade definitions · Research methodology
