SigmaWay Blog

SigmaWay Blog tries to aggregate original and third party content for the site users. It caters to articles on Process Improvement, Lean Six Sigma, Analytics, Market Intelligence, Training ,IT Services and industries which SigmaWay caters to

Enterprising Value vs Market Capitalization

Enterprising value(EV) is a better measure of a firm's real market value than market capitalization as it takes debts and cash reserves into account. Market capitalization does not give a clear idea of the amount an investor needs to buy a firm. If a firm has cash reserves, the buyer is incurring lesser costs than the amount he is paying and it is opposite when the firm has debts. EV is the sum of a firm's market capitalization and its net debt. The drawback of EV is that it does not consider the interest costs and income over time. So EBIT is necessary despite the fact that EV gives a rough idea of the true value of a firm. Read more at: http://value-picks.blogspot.in/2017/05/using-enterprise-value-to-compare.html?m=1

Rate this blog entry:
Usefulness of Data Visualization
Easy Steps To Deal With Human Capital Issues

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Tuesday, 10 December 2019
If you'd like to register, please fill in the username, password and name fields.

Sigma Connect

sigmaway forums

Forum

Raise a question

Access Now

sigmaway blogs

Blogs

Blog on cutting edge topics

Read More

sigmaway events

Events

Hangout with us

Learn More

sigmaway newsletter

Newsletter

Start your subscription

Signup Now

Sign up for our newsletter

Follow us