Enterprise Value (EV): Represents the total value of a firm, including debt and equity, and is independent of capital structure. Formula: EV = Market Cap + Debt - Cash. Equity Value: Represents the value available to shareholders (market cap). Formula: Equity Value = Enterprise Value - Net Debt.
Enterprise Value (EV): Represents the total value of a firm, including debt and equity, and is independent of capital structure. Formula:
EV = Market Cap + Debt – Cash.
Equity Value: Represents the value available to shareholders (market cap). Formula:
Equity Value = Enterprise Value – Net Debt.
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Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to pay its investors. Formula:
Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to pay its investors. Formula:
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