Enterprise Value (EV)

Enterprise value is a measure of a company’s total value, often used as a more comprehensive alternative to market capitalisation in M&A valuation. It is calculated as the sum of a company’s equity value, debt, and minority interest, minus its cash and cash equivalents. EV represents the theoretical takeover cost of a business and is widely used in valuation multiples such as EV/EBITDA, offering a clearer view of a company’s value irrespective of its capital structure.

P4i uses Enterprise Value as a core valuation tool to assess business worth, support negotiation, and drive data-led decisions in M&A transactions.