Total Enterprise Value (TEV)

Total Enterprise value (TEV) is the total value of a firm and is calculated and used in takeover situations. TEV is the sum of a company’s market capitalisation (total number of shares outstanding including in-the-money stock options and convertibles multiplied by the share price), net debt (total debt minus cash and cash-equivalents), minority interests and preferred stock. Analysts use TEV as the basis for calculating a series of ratios, for example TEV as a multiple of EBITDA or sales.