Ans:
Market capitalisation and enterprise value serve different motives in evaluating companies to invest in. Value of enterprise helps in assessing the market value of a business. In contrast, the equity or market capitalisation ratio helps determine an indication of the company's profile.
If you're conducting investment research for yourself, enterprise value is important in selecting your stocks. In the same way, for investors of all levels, a market capitalisation is an effective way to categorise and manage risk in your portfolio.