The enterprise value is a method used to calculate the real value of a company. In addition to considering the market value of equity, debt, minority interests, cash, and cash equivalents are also included in its calculation. The enterprise value is important as it enables calculating the real worth of a company before a takeover. It is also calculated by financial analysts to identify to real value of the company as the equity value ignores some important factors such as debt. Finally, the enterprise value is used to generate various ratios, also called multipliers (e.g., EV/Sales).