Enterprise Value (EV)

Enterprise Value is what it would actually cost to buy an entire company, not just its stock. While a company's market cap only counts the value of its shares, EV adds back the company's debt (money it owes) and subtracts cash on hand, giving you the true price tag. You'll see EV used when comparing companies or checking if a stock is cheap or expensive—it's especially useful for comparing firms with different debt levels. For example, Company A might have a lower stock price than Company B, but if A carries way more debt, its true cost to acquire could actually be higher. Think of it like comparing house prices: you need to factor in the mortgage, not just the asking price.