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Field dictionary

Finance, translated.

Definitions are only useful when you know why they change a decision. Search by word, concept, or consequence.

2 terms

Enterprise value

Valuation

A company value measure that combines equity value with net debt and related claims.

Why it matters: It helps compare operations financed with different mixes of debt and equity.

Net debt

Business

Interest-bearing debt minus cash and cash-like assets.

Why it matters: It gives a rough view of financial leverage, though not every cash balance is freely available.