DCF Flashcards

1
Q

Enterprise Value Definition

A

Value of the operating business (operating assets minus operating liabilities)

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2
Q

Operating assets

A

All assets except for cash & other investment assets

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3
Q

Operating liabilities

A

Usually all liabilities except for debt & debt-like liabilities

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4
Q

Enterprise Value Formula Note

A

Enterprise value - net debt(debt - cash) = Equity value is just a reformulation of Assets - liabilities = equity

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5
Q

EV Formula

A

Market Value of Equity + (debt - cash) = EV

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