Business valuations often reference two related but different numbers: enterprise value and equity value. Knowing the difference helps you understand what a valuation is really telling you.

Enterprise value reflects the value of the business itself — its operations, assets, and earning power — independent of how it's financed. It answers the question: what would it cost to acquire the entire business, debt included?

Equity value is what's left for you, the owner, after accounting for the business's debt and cash position. It reflects what you'd actually walk away with if the business sold today.

Equity value = Enterprise value – debt + non-operating assets

For businesses carrying debt — such as one financed through a loan or acquisition — enterprise value and equity value can differ significantly. Equity value is often the more meaningful number for owners, since it represents your actual stake rather than the value of the business as a whole.

Brillian's valuation reports include both figures, so you can see the full picture of your business's worth alongside what that worth means for you personally, given your current balance sheet. Together, these two numbers tell a fuller story — not just what your business is worth, but what that worth translates to for you as its owner.