Total Enterprise Value

Total Enterprise Value (TEV) is a financial metric that represents the entire value of a company. It is calculated by adding the market value of the company's equity (common stock, preferred stock, minority interest) to the total debt of the company, and subtracting any cash and cash equivalents held by the company.

In equation form, Total Enterprise Value can be expressed as:

TEV = Market Value of Equity + Total Debt - Cash and Cash Equivalents

TEV is often used by investors, analysts, and companies themselves to assess the overall value of a company, as it provides a more comprehensive view than just looking at market capitalization (which only considers the market value of equity). By including debt and cash, TEV gives a clearer picture of the total value of a company's operations, regardless of its capital structure.

See also Bookkeeping, Financial Statements, Reg. S-X, Revenue, Total Enterprise Value, Book Value, Distinguishing Revenue and Free Cash Flow, and Distinguishing Revenue and FFO.