Sometimes people use the two terms interchangeably. However, for valuation purposes there may be a significant difference in the two terms. Enterprise value is often referred to as the value of the invested capital which includes the value of the equity and the value of the firm’s liabilities. This could represent the asset side of the balance sheet and would likely include the hard business assets (property, equipment, etc.), cash, receivables, inventory, and the goodwill of the business. Equity Value is the enterprise value LESS all liabilities of the business. As various professionals may define these levels of value differently, it is important to understand exactly what a definition of a level of value includes or excludes under specific circumstances delineated in the valuation report.