The value of an enterprise corresponds to the use, which the owners of the enterprise can draw from this. This use is to be understood in principle in such a way, how it concretizes itself subjectively for the respective owners.

As a function of the function, which an enterprise value fulfills, kinds can be differentiated by enterprise values: In addition the decision value and the agreement value belong. See below for this.

One calls the process, during which the enterprise value is determined, assessment of company value. See there in particular for information about individual procedures of the assessment of company value.

Decision value

The enterprise value is a decision value, if it represents a decision basis for a certain circle of acquaintances. This is typically with the purchase or sales of enterprises or portions of these the case.

The function of the decision value clarifies, why the enterprise value is in principle dependent on (potential) the enterprise owner. The buyer of enterprise portions will for example generally more highly evaluate these than the salesman. The purchase price will regularly lie between them and does not correspond not to the enterprise value.

Agreement value

If the enterprise value is consulted, in order to adjust the opposite interests of two or several parties, one speaks of the agreement value. This is - of a consultant as objektivierter value on the basis from yardsticks to to usually determine, which ignore subjective circumstances of the involved ones. These yardsticks result directly from law and/or from relevant iurisdiction. The agreement value can be submitted of the judicial check, if it is not anyhow already determined in the context of one legal proceedings.

Applications are essentially (obligatorily) compensations to former owners of enterprise portions. In case of the elimination of a partner for example in all rule contractual requirements from articles of association are entitled to this. Also legal requirements for compensation must be rated (like e.g. in the course of a Squeeze Out procedure) on the basis the agreement value.

Articles in category "Enterprise value"

We found here 3 articles.

Related Websites

We found here 3 related websites.

• Enterprise Multiple
  A ratio used to determine the value of a company. The enterprise multiple looks at a ... Enterprise value is a better metric than market cap for takeovers. ...


• Enterprise Value - EV
  Investopedia.com - The Investing Education Site. Includes the most comprehensive investing dictionary on the web as well as articles and tutorials on nearly ...


• Total Enterprise Value - TEV
  Investopedia.com - The Investing Education Site. Includes the most comprehensive investing dictionary on the web as well as articles and tutorials on nearly ...