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Finance question: Total Enterprise Value (TEV)? |
TEV = Market Cap + Long Term Debt - Cash It is a way to compare, or value, companies that have different capitalization (debt/equity) structures. So, if you're valuing two different companies at some multiple of earnings, cash flow, sales, etc., then you'll arrive at enterprise value. To figure out the equity value of each, you need to subtract out the debt. |
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