EV

   Enterprise Value. A measure of how the share market values a company. It comprises market capitalization plus debt and preferred shares minus the company's holding of cash. Enterprise value divided by EBITDA is often used to measure the value of listed companies, because the EV includes a company's debt (and thus a measure of total cost in case of a takeover and the leverage involved), while the divider (EBITDA) focuses on the company's core earnings power, ignoring elements that may vary depending on local regulations.

   ► See also EBITDA.

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EV UK US noun [U] ACCOUNTING

► ABBREVIATION for EMBEDDED VALUE(Cf. ↑embedded value)