MarketLearn
Chapter 28Advanced~19 min total

Enterprise Value

The price of the whole business

Market capitalisation values only the equity. Enterprise value values the whole business — equity plus debt minus cash — so businesses with different borrowings can be compared fairly.

Lessons

  1. 1Market cap is not the whole storyAdvancedEV adds debt and subtracts cash to value the whole business.~10 min
  2. 2Comparing different capital structuresAdvancedEV lets you compare operations regardless of borrowing.~9 min
Course positionChapter 28 of 35