Enterprise value is a financial concept that describes the amount of money the market believes your business to be worth. It is often referred to as the ‘takeover value’ — the amount of money required for an acquirer to buy your company at it’s current market price. Enterprise value is different that market capitalization or market cap. A public company’s market capitalization is equal to the number of shares outstanding multipled by the current share price. Enterprise value is a more comprehensive measure of a company’s value since it also includes the amount of cash, debt, and other items associated with a business.
Monday, September 7, 2009
I'm pretty sure I'm going to be a millionaire
So tech people have all kinds of crazy ideas about how much their businesses are worth. From JCM over at a product management and marketing blog:
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