What Is the Enterprise Value Bridge?

The enterprise value, or EV, bridge converts the value attributable to common shareholders into the value of a company’s core operations. Understanding each adjustment—and the intuition behind it—is essential for valuation, transaction analysis, and investment banking interviews.

Author: Alex Johnson Updated 4 min read

What the EV bridge measures

Equity value is the value attributable to a company’s common shareholders. For a public company, it is generally calculated as diluted shares outstanding multiplied by the current share price. Enterprise value represents the value of the company’s core operations available to all capital providers, including both shareholders and lenders.

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