Enterprise value

Enterprise value is like the price you pay for an entire business. It’s the amount you would have to pay to own the entire business. It’s kind of like the price you’d pay for a house. It’s the house price plus the money you’d have to use for closing costs and other things like paying off the mortgage. So for a business, it’s the total value of everything it owns (like buildings, money and investments) plus all the money it owes (like loans, bonds, and debt).