Market Cap = Current share price x total number of shares outstanding
Enterprise Value = Market Cap + Total Debt - Cash
Enterprise Value (EV) is a better measure of a company's total value. It takes into account the company's entire capital structure (including debt and equity), while Market Cap does not take debt into account.
Enterprise Value is the preferred valuation method for mergers and acquisitions because it provides a complete picture of the company's cash resources and financial obligations. It gives a realistic purchase price to acquire a public company.
Note: Enterprise Value is calculated using the company's recent quarterly filing.