Definition for : Enterprise value
GLOSSARY LETTER
Enterprise Value, or the Value of Capital employed, corresponds to the Market value of the enterprise's machines and commercial activities. Enterprise Value is equal to the Market value of the Shareholders' equity (Stock Market capitalisation if a company is quoted) plus the Market value of the Net financial debt. Also called Firm value.
(See Chapter 32 Capital structure and the theory of perfect capital markets of the Vernimmen)
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