Enterprise value is calculated as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. Think of enterprise value as the theoretical takeover price. In the event of a buyout, an acquirer would have to take on the company’s debt, but would pocket its cash.
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acquisition price aerospace defense algoritm capital asset pricing model capital asset pricing model capm capitalization rate CAPM cash flow cash flow analysis cash flow statement company analyses comparable company Comparable company analysis cost of capital current assets current market value dcf model DCF Valuation Deal Value discounted cash flow discounted cash flow analysis EBITDA % estimate value EV/EBITA EV/EBITDA facebook financial definitions forecast sales Free Cash Flow key ratios LBO model M&A transactions mergermarket mergers and acquisitions model template model tutorial motorcycle parts net working capital Precedent transaction analysis private equity companies private equity industry relative valuation target trading comps WACC