Enterprise Value (EV) is an economic measure reflecting the market value of a company. It is the sum of claimants' claims: creditors (secured and unsecured) and equity holders (preferred and common). Think of it as the theoretical takeover price if the company gets bought.
It's calculated using the following formula:
Please note that cash & short-term investments are deducted. The reason for this is that (1) cash is considered a non-operating asset, and (2) cash is already implicitly accounted for within equity value.
The Enterprise Value is converted to the currency selected in the Currency Filter in the Filter Menu. The prior day exchange rate is used to make the conversion. By converting to a common currency, we ensure that you can compare companies reporting in different countries.