How to Determine Total Enterprise Value?

Enterprise value is a measure of a company's total value and is calculated by adding the market value of its equity to its net debt. Here is the formula for determining enterprise value:

Enterprise Value = Market value of equity + Net debt

To calculate enterprise value, you need to know the following:

Market value of equity: This is the total value of a company's outstanding shares of stock. You can determine the market value of equity by multiplying the number of outstanding shares by the current market price per share.

Net debt: This is the total amount of a company's debt, minus any cash and cash equivalents. You can determine net debt by subtracting cash and cash equivalents from total debt.

Once you have these two values, you can use the formula above to calculate enterprise value.

It is important to note that enterprise value is just one measure of a company's value, and other measures, such as book value or intrinsic value, may also be used to evaluate a company.