The Leverage Based Value (LBV) evaluates the contribution of corporate debt to market capitalization and share price of a specific company subsequently. In other words: which share price can we expect, if the company under review would be unlevered (fully equity financed)? The LBV provides valuable information as to whether a company can sustainably increase its value by raising debt capital or whether borrowing capital is counterproductive, which merely increases the risk without increasing the company’s value. In addition, the LBV is an important decision-making tool as to whether companies should cover additional capital requirements with equity or debt.