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Enterprise value |
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Enterprise valueA company's value is sometimes measured in terms of the total funds being used to finance it. This investment ratio is increasingly used in place of the price/earnings ratio in the analysis of certain types of companies. It indicates the economic rather than accounting return that the company is generating on the total value of the capital supporting it.Typical companies for which this ratio is appropriate are those that have borrowed heavily to finance growth, like telecoms companies building a network or those that have paid large premiums for acquisitions or assets.Similar MatchesFree enterpriseFree enterpriseA system in which economic agents are free to own property and engage in commercial transactions. See laissez faire, economic freedom, . Multinational enterpriseMultinational enterpriseA firm, usually a corporation, that operates in two or more countries. In practice the term is used interchangeably with multinational corporation. State trading enterpriseState trading enterpriseAn entity of government that is responsible for exporting and/or importing specified products. See marketing board. EnterpriseEnterpriseA business firm. Enterprise zoneEnterprise zoneA region in which businesses get special tax advantages (including exemption from business rates) as an incentive to set up business there. Designation normally lasts for 10 years. Further SuggestionsEnterprise Investment SchemeState-owned enterprise Government sponsored enterprises enterprise zone trust |
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