Enterprise value 1 article

Enterprise value is a valuation measure intended to represent the value of a company’s operating business across both equity and debt capital. It is commonly derived from market capitalization with adjustments for debt, cash and related balance-sheet items. In biotechnology analysis, enterprise value can separate the market value of the drug-development business from excess cash or financing structure, which is useful for transaction comparisons and valuation multiples. It should not be treated as interchangeable with market capitalization.