Calculating the Enterprise Value of a Firm

This video explains the concept of a firm's enterprise value, provides an equation to calculation enterprise value, and illustrates the calculation with an example.
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[@vishvanathgangoli4874]

Lucid and simple explanation 🎉🎉

[@jobber1984]

You the man!

[@Thisisahandle701]

Great explanation

[@vaishnaviaribandi4280]

Thanks for all the amazing work you do!!! Just the enterprise value by itself, does it speak anything about the company's position? Should the value be high or low? Thanks

[@akhkjbkjlkj933]

You are great sir thank you!!

[@Edspira]

Thanks. Best of luck to you!

[@mjassar8603]

how to thank u ???

[@josephwehby9313]

How would I go about finding the debt and cash of an actual company

[@theselftaughtspeculator6553]

Joseph Wehby balance sheet

[@josephwehby9313]

Sean Burns thanks. Do you just put the cash or other things like AR

[@ayushman3359]

@@josephwehby9313 I have the same query

[@sachinprabhuram5765]

@@josephwehby9313 Only cash and cash equivalents

[@josephwehby9313]

@@sachinprabhuram5765 wow. I don’t even really remember posting this but appreciate the response

[@jorgeluizdesantanajunior6775]

When you say share price, do you mean common stock price, preferred stock price or both?

[@connormacleod7680]

Share price means common shares. Market cap is common shares. Preferred shares would be considered debt (because of their similarity to debt instruments) and would be contained within net debt.

[@phantomcreamer]

It doesn't matter, you add the total value of preferred shares. Remember, EV is what you'd pay to settle debt and make it private, you can use any cash they have to help pay for the shares and debt.

[@mrtsiris]

WRONG. In your example, more cash (ceteris paribus) leads to smaller EV.

[@BorisGligorijevic]

Actually it is correct. That is exactly what he did, pay more attention. He deducts the cash when calculating net debt.

[@WPaKFamily]

lmao

[@WPaKFamily]

WrOnG ☝️🤓