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. Investopedia Says:
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. Related Terms:
Debt
Enterprise Value - EV
Market Capitalization
Preferred Stock |