enterprise value


1 Answer(s)


Enterprise Value = Equity + Net Debt.
Net Debt = Debt - Cash

If the company's cash is higher than its Equity Value + Debt Value then yes the company will have negative EV.

There is a very detailed and interesting article on this topic here -
http://aswathdamodaran.blogspot.in/2008/12/entperise-value-is-negative-is-that.html