DCF Flashcards
1
Q
Enterprise Value Definition
A
Value of the operating business (operating assets minus operating liabilities)
2
Q
Operating assets
A
All assets except for cash & other investment assets
3
Q
Operating liabilities
A
Usually all liabilities except for debt & debt-like liabilities
4
Q
Enterprise Value Formula Note
A
Enterprise value - net debt(debt - cash) = Equity value is just a reformulation of Assets - liabilities = equity
5
Q
EV Formula
A
Market Value of Equity + (debt - cash) = EV