Editing Enterprise value (section)

{{Short description|Economic measure}}
'''Enterprise value''' ('''EV'''), '''total enterprise value''' ('''TEV'''), or '''firm value''' ('''FV''') is an economic measure reflecting the [[market value]] of a business (i.e. as distinct from [[market price]]). It is a sum of claims by all claimants: creditors (secured and unsecured) and shareholders (preferred and common). Enterprise value is one of the fundamental metrics used in [[business valuation]], [[financial analysis]], [[accounting]], [[Portfolio (finance)|portfolio]] analysis, and [[risk analysis]].

Enterprise value is more comprehensive than [[market capitalization]], which only reflects common [[Equity (finance)|equity]].<ref>[http://www.investopedia.com/terms/e/enterprisevalue.asp Definition of 'Enterprise Value - EV']</ref> Importantly, EV reflects the opportunistic nature of business and may change substantially over time because of both external and internal conditions. Therefore, financial analysts often use a comfortable range of EV in their calculations.