Cash in Hand refers to the physical cash held by a business. It is normally made up of cash of the local country as well as foreign currencies held to conduct business. Cash in hand is sometimes referred to as petty cash and represents a very small component of the total cash holdings of a business. In business valuation analysis, cash held in hand forms part of the current assets portfolio of the business and forms an important component of the debt free cash flow which is discounted to arrive at the enterprise value under the discounted cash flow valuation method. The market value of any outstanding debts, including outstanding mortgages, are deducted from the enterprise value to arrive at the value of equity.