What if the company’s assets have been paid for not by shareholders or a bank, but the company’s organic growth? Does it impact the enterprise value?
@r.a.p.h44814 жыл бұрын
You are referring to retained earnings. If the company did a good job, then those will show up on the one hand as growth of Assets: Fixed Assets and working capital like cash, inventory and receivables. On the other hand it will be counted as Equity under the heading of "Retained Earnings" This will not show up in Enterprise Value directly. E.V. assumes that maniac-depressive "Mister Market" will reflect this in the share price.