Invested Capital refers to the total amount of capital made up of equity, debt and all other forms of equity and debt employed in a business enterprise. To estimate the fair market value of invested capital, business valuation analysts apply techniques under the income, market and asset methods. The fair market value conclusion covering total invested capital (equity and debt) is referred to as enterprise value. To arrive at the fair market value of equity, the market value of debt, preference shares and other debt instruments are subtracted from the enterprise value.