THE E.V. MATH FORMULA

By Dr. David E. Marcinko MBA CMP®
SPONSOR: http://www.CertifiedMedicalPlanner.org
The enterprise value [EV] tends to be thought of as a theoretical takeover price if a company were to be bought. It is calculated as market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.
CITE: https://www.r2library.com/Resource/Title/0826102549
Enterprise value = common equity at market value (this line item is also known as “market cap”) + debt at market value (here debt refers to interest-bearing liabilities, both long-term and short-term) + minority interest at market value, if any + preferred equity at market value + unfunded pension liabilities and other debt-deemed provisions – value of associate companies – cash and cash equivalents.
MORE: https://en.wikipedia.org/wiki/Enterprise_value
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Filed under: "Ask-an-Advisor", Accounting, CMP Program, Glossary Terms, Investing, Touring with Marcinko | Tagged: Certified Medical Planner™, CMP, corporate value, david marcinko, Dictionary of Health Economics and Finance, enterprise value, EV, financial enterprise value, market capitalization |
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