Enterprise value


 

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Enterprise value

A 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 Matches

Enterprise

Enterprise

A business firm.


Enterprise zone trust

Enterprise zone trust

A property trust which invests in enterprise zones.


Multinational enterprise

Multinational enterprise

A firm, usually a corporation, that operates in two or more countries. In practice the term is used interchangeably with multinational corporation.


State-owned enterprise

State-owned enterprise

A firm owned by government. Relations between SOEs and private firms on international markets raise special problems for GATT, since SOEs may not respond normally to market forces and their actions may reflect government policies.


Government sponsored enterprises

Government sponsored enterprises

Privately owned, publicly chartered entities, such as the Student Loan Marketing Association, created by Congress to reduce the cost of capital for certain borrowing sectors of the economy including farmers, homeowners, and students.


Further Suggestions

enterprise zone
Enterprise Investment Scheme
State trading enterprise
Free enterprise


 
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