Question:

What is the formula for Enterprise Value?

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Answer:

The formula for Enterprise Value is:

Equity value + debt + preferred stock + minority interest - cash

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Enterprise & Equity Values

Enterprise & Equity Values

When acquiring a company, should you look at Enterprise or Equity Value?

Enterprise & Equity Values

How do you calculate Equity Value?

Enterprise & Equity Values

Why do you subtract cash in the Enterprise Value formula?

Enterprise & Equity Values

Why can't you use Equity Value / EBITDA as a multiple?

Enterprise & Equity Values

What is the difference between Equity Value and Shareholders' Equity?

Enterprise & Equity Values

Why do you need to add Minority Interest to Enterprise Value?

Enterprise & Equity Values

Why is debt added to Equity Value in the formula for Enterprise Value?

Enterprise & Equity Values

What is the difference between Enterprise Value and Equity Value?

Enterprise & Equity Values

Should you use the book value or the market value of each item when calculating Enterprise Value?

Enterprise & Equity Values

Is it possible for a company to have a negative Equity Value? How?

Enterprise & Equity Values

What are the four most common valuation multiples?

Enterprise & Equity Values

How do you calculate Fully Diluted Shares Outstanding?

Enterprise & Equity Values

Can a company have a negative Enterprise Value? How?

Enterprise & Equity Values

Why do you add Minority Interest to Enterprise Value?