Total Enterprise Value (TEV)

This is a valuation measurement utilized for comparing companies that have different levels of debt. This includes both the company’s equity value and market value of its debt, while at the same time, subtracting out cash and cash equivalents. TEV serves to help with valuations of potential takeover targets, plus the amount that should be paid for the acquisition. TEV is calculated as follows: Market Capitalization + Interest-Baring Debt + Preferred Stock - Excess Cash.

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