An expanded explanation of enterprise value is provided by Investopedia: "A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is calculated as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents."
Enterprise value is discussed further by investing site The Motley Fool.
In Value Investing from Graham to Buffett and Beyond*, by Bruce Greenwald, Judd Kahn, Paul Sonkin, and Michael Biema, the authors provide an illustration (John Wiley, 2001 edition, pp. 205-207) of how EV can be used in valuing a company's present market value (PMV). In 1998, General Housewares had a per share market value of $11. Mario Gabelli of Gabelli Asset Management calculated, however, that based on its low enterprise value coupled with a high pretax rate of return its PMV should be considerably higher. In fact, by spring of the following year offers for purchase of the entire company resulted in a final buyout price of $28.75 per share.
(*Available online at prices ranging from a free e-reader download to $49.95)