Enterprise value is the true price of a business since buying a business includes receiving its cash and taking on its debt.In core definition you can say it as a measure of  company’s value, often used as an alternative to straightforward market capitalization.

It’s an important number to consider when you’re valuing a stock.Using enterprise value instead of market cap in a valuation metric has the effect of penalizing debt and rewarding cash.It can be said as a modified version of market capitalization which incorporates debt in it.

Enterprise value = market capitalization – cash and equivalents + debt

In full

Enterprise Value = Market Cap – Cash & Equivalents + Debt + Minority Interest + Preferred Shares

For analysis purpose  Enterprise Value / Revenue ratio is used to analyse the true price of a business