Enterprise value

RECENT NEWS
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By Power Hedge: North Atlantic Drilling (NADL) is one of the most highly levered offshore drilling companies, as evidenced by comparing its market cap to its enterprise value. At the time of writing, North Atlantic Drilling had a market cap of...
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The Economic Times  Jun 19  Comment 
RIL will create as much enterprise value in the next 10 years as it has done in the last three decades. Ambani Brothers | Check out RIL's new agenda for growth
The Economic Times  Jun 18  Comment 
RIL will create as much enterprise value in the next 10 years as it has done in the last three decades. Ambani Brothers | Check out RIL's new agenda for growth
The Economic Times  Jun 18  Comment 
RIL aspires to double its enterprise value to an over Rs five-lakh-crore company in next decade. Ambani Brothers | RIL mulls $9bn investment in petrochem biz
The Times of India  Jun 18  Comment 
Free to enter new businesses after scrapping a non-compete pact with brother Anil, Mukesh Ambani unvieled RIL's mega plans for power and telecom to double enterprise value to $160 billion in 10 years, as also intent to supply gas to Anil Ambani...
Fusion Investing and Analysis  Jun 22  Comment 
My intelligent and gorgeous wife once told me we should sell company A, which we owned, and buy company B as they were the same price and company B was clearly worth more. My interest was peaked; however, the great opportunity was a mirage, as she...
Disciplined Approach to Investing  Jun 13  Comment 
The American Association of Individual Investors website contains a number of useful predefined stock screens. The most recent issue of the American Association of Individual Investors' AAII Journal contained an article covering one of the...




 

Enterprise Value - market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents - represents the economic value of a company - the minimum amount an acquirer would have to pay to take over the company.

Enterprise Value examples

Enterprise value differs from Market Cap in that market cap doesn't fully account for things like cash and debt. For example, a company with a market cap of $100 million and $10 million in cash would really cost $90 million to acquire - because you gain the $10 million with the purchase. Similarly, a company with a market cap of $100 million and $10 million in debt would really cost $110 million to acquire, because you would assume the company's debt when you acquire it.

Wikinvest Calculation

Enterprise Value is calculated as:

EV = Market Capitalization + Long Term Debt + Minority Interest + Preferred Stock - Cash And Cash Equivalents

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