Enterprise value is the total value of a business. It considers how much money the business owes (debt) and how much money the business owners have invested (equity). To calculate the enterprise value, add up the debt and the equity. This value shows how much the business is worth to both the people who lent money and the owners. It’s important to note that the enterprise value is not the same as the value of the ownership alone. To find that, you subtract the debt from the enterprise value. This offers a clearer idea of the value of ownership. Intangible assets can positively impact a company’s enterprise value. They provide a competitive advantage, future earnings potential, growth opportunities and attract investors, contributing to the overall worth of the business.
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