Enterprise Value: Concept and Calculation

Students often don't fully understand the concept of enterprise value. Some equate it to the worth of a firm's total assets, and some (more wrongly) equate it to the worth of a firm's equity (aka market capitalization).
In this video, I explain what enterprise value represents, why it is important, how it is different from "firm value" and "market capitalization", and finally, why it is often calculated as "Market Value of Equity + Market Value of Debt - Excess Cash".
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My name is Atif Ikram. I am a Professor of Finance at Arizona State University (wpcarey.asu.ed....
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