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  • Debt (2) : Enterprise Value

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    Tomy Ferreira
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    This document defines and provides formulas for several financial metrics used to value firms and investments. It defines enterprise value as the total value of a firm based on market capitalization plus debt, minority interests, and other claims, minus cash and non-operating assets. It also defines market capitalization, EBITDA, return on assets, return on equity, return on investment, weighted average cost of capital, and net working capital. References for further information on these terms are also provided.

    Original Description:

    Breve analisis de multiplos financieros presentes en un M&A

    Original Title

    Conceptos Financieros

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    This document defines and provides formulas for several financial metrics used to value firms and investments. It defines enterprise value as the total value of a firm based on market capitalization plus debt, minority interests, and other claims, minus cash and non-operating assets. It also defines market capitalization, EBITDA, return on assets, return on equity, return on investment, weighted average cost of capital, and net working capital. References for further information on these terms are also provided.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    8 views2 pages

    Debt (2) : Enterprise Value

    Uploaded by

    Tomy Ferreira
    This document defines and provides formulas for several financial metrics used to value firms and investments. It defines enterprise value as the total value of a firm based on market capitalization plus debt, minority interests, and other claims, minus cash and non-operating assets. It also defines market capitalization, EBITDA, return on assets, return on equity, return on investment, weighted average cost of capital, and net working capital. References for further information on these terms are also provided.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Toms Estrada Ferreira

    A01201569
    LAF
    Enterprise Value
    +Market cap
    +debt at market value
    +minority interest at market value, if any[2]
    +preferred equity at market value
    +unfunded pension liabilities and other debt-deemed provisions
    - cash and cash equivalents
    - "extra assets", assets not required to run the business
    - investments in associated companies at market value

    The enterprise value is the value of the firm but considering the price of share
    as market and debt as market value
    Market Capitalization
    Total market value of all outstanding shares
    Market price shares* Number outstanding shares
    The market capitalization
    Shareholders net equity

    EBITDA
    EARN BEFORE INTERESTS+ AMORT+ DEP
    ROA; Return Over Assets

    ROE:

    Return over equity

    Toms Estrada Ferreira


    A01201569
    LAF

    ROI

    Return over investment

    WACC: weighted average cost of capital

    Is the average costs of debt and equity from financing.


    Net Working capital

    The capital that is needed to encover the Working obligations in short term

    Referencias
    http://www.investopedia.com/terms/e/enterprisevalue.asp
    http://en.wikipedia.org/wiki/Enterprise_value
    http://www.investopedia.com/terms/m/marketcapitalization.asp
    http://www.investopedia.com/university/ratios/investment-valuation/ratio8.asp

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