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Learn Enterprise and equity value

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B Basic

Equity value and diluted shares9m
Enterprise value and the bridgePro10m
Matching multiples to valuePro9m

A Advanced

What changes EV and what does notPro8m
Equity value versus EV in a dealPro8m
Edge cases: negative EV, convertibles, leases, investmentsPro11m

FlashcardsPro0/24
Basic quizPro80% passes
Advanced quizPro80% passes
Terms

Enterprise and equity value

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of 6 lessons: 0
of 24 cards

Flashcards Start the first lesson

What a company is worth to its shareholders versus what the whole business is worth, how to bridge the two, and the trap questions built on the difference.

BBasic3 lessons

1Equity value and diluted sharesEquity value is what the shares are worth. The only hard part is counting the shares correctly, and that is exactly what interviewers test.9 min
2Enterprise value and the bridgeProEnterprise value is the value of the operating business to everyone with a claim on it. You get there from equity value by adding the other claims and subtracting cash.10 min
3Matching multiples to valueProA valuation multiple divides a value by a metric. The numerator and denominator have to belong to the same group of owners, or the multiple means nothing.9 min
Basic quizPro8 questions, 80% passes

AAdvanced3 lessons

4What changes EV and what does notProFinancing moves money between the lines of the bridge without changing the business. Most trap questions are this idea in disguise.8 min
5Equity value versus EV in a dealProWhen one company buys another, the offer is quoted per share, the cheque goes to shareholders, and the true cost includes the debt the buyer takes on.8 min
6Edge cases: negative EV, convertibles, leases, investmentsProThe bridge has a handful of awkward items. Each has a clean answer once you remember that EV must match the operating metric it is divided into.11 min
Advanced quizPro8 questions, 80% passes