EV takes into account not only a company's market value (i.e. its market capitalization) but also its level of debt. The idea behind it is that a company's buyer purchases the debt in addition to getting the cash as part of the deal. EV is particularly useful when trying to compare companies with different debt levels.

Enterprise Value =	Market capitalization + Net debt
with
Market capitalization =	Total shares outstanding x Share close price
Net debt =	Total interest bearing debt
	+ Redeemable preferred shares
	+ Preferred shares
	- Cash & Equivalents
	- Short Term Investments

NB: The Current Enterprise Value is calculated with the current market capitalization (ie. from close of trade the day before)..

The net debt figure is taken from the last annual report of the company.