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Enterprise value

  • Writer: Thomas Tsang
    Thomas Tsang
  • Mar 8, 2025
  • 1 min read

Updated: Mar 9, 2025

In business valuation, enterprise value is the value of the business. It includes any intangible assets not booked such as goodwill, customers relationships, brand name, etc.


Equity value is the value of the company’s equity shares


Enterprise value - total debts + cash and cash equivalent

= Equity value


In a CGU, net current assets such as accounts receivables, inventory, cash at bank and cash equivalent and accounts payables, accrual are included in carrying amounts of a CGU, which is the enterprise value.


 
 
 

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