™$2 billion equity market value plus $500 million debt minus $200 million cash gives a simplified $2.3 billion enterprise value before other claims/adjustments.
Fundamentals
Enterprise value
A valuation measure that generally combines equity value and debt while subtracting cash.
Plain-English context
Put the definition to work.
Use a stated methodology for cash, preferred claims, noncontrolling interests and leases; simplified EV is not a universal takeover price.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. SEC — financial statement guide