What is enterprise value?
1 Answer(s)
Binny
Hi Yasar,
In your DeZyre module the definition is Ent Value = Equity Value + Net Debt.
Net Debt is nothing but Total Debt - Cash and Cash Equivalents
When you calculate equity value through DCF, and if you want to get to a per share value, then you divide the Equity value by the (number of outstanding shares, preferred shares etc). So it effectively amounts to the same thing.
Does that make sense?
Jan 16 2013 10:40 AM
In your DeZyre module the definition is Ent Value = Equity Value + Net Debt.
Net Debt is nothing but Total Debt - Cash and Cash Equivalents
When you calculate equity value through DCF, and if you want to get to a per share value, then you divide the Equity value by the (number of outstanding shares, preferred shares etc). So it effectively amounts to the same thing.
Does that make sense?