Why you should focus on enterprise value - MoneyWeek Videos
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- čas přidán 19. 07. 2024
- We suspect that many private investors don’t know what ‘enterprise value’ means. But it’s actually a really useful concept that can help you make better investment decisions. Watch this video and you’ll learn about the ‘enterprise value’ concept and how to calculate it. You’ll probably become a better investor as a result.
Great stuff, I've been struggling to understand EV and this video was very clarifying... thanks for that! It's the type of concept that you learn, and forget, and learn, and forget, and learn, and forget...
The best explanation of Enterprise value on the net. Thank you so much.
Glad you found it useful!
Finally I understand EV:-) Thanks! Love the whiteboard!
Great explanation a lot of explanations on the internet are confusing for enterprise value. Luckily the concept is simple (if you buy a house for 1$ but it has a mortgage of 300 000 $ and you also become the owner of the mortgage, you actually pay 300 001 $ not 1 $). So Enterprise value is the price you actually pay (it doesn't say anything how much the company (or house in this example) is worth.
Very well explained, but there are a few important caveats. 1) Provided a Company is solvent and meeting all obligations, excess cash is JUST ANOTHER ASSET and although FUNGIBLE, is generally LESS desirable since the return on marketable securities is far less than the return on the company´s business and may therefore be a sign of inefficient allocation of resources - so it is possible that as time goes by and all else is equal, companies with excess cash have a lower growth rate than their peers. 2) When all goes well, Equity and Debt holders are equally Capital Providers with the difference that Equity Holders get paid (or re-invest) dividends and Debt Holders get paid Interest (with differing degrees of subordination which is not relevant since all is well). 3) When the S hits the Fan, Debt = Equity since all Capital Providers are in the same "boat".
Yes just what I was looking for. This channel never never disappoints 👏
thank you so much for this useful data! Greatly appreciated.
Another fantastic video!
I'd rather say COST not VALUE...
Very well explained!
I felt so homesick without this channel.
simply magnanimous video
best explanation ever.
Should the value of non-operating assets (NOA) like e.g. real property NOT used in operations (and hence not participating in generating operating cash flows but acting as investment) and hence not valued within DCF valuation of the company be considered a component of EV or should it be treated similarly to cash, i.e. not counting to EV? In the latter case the gross company value would be calculated as EV + cash + NOA.
Good question. I have the same.
so which one is better a company with higher or lower enterprise value?
Why you add net debt to market cap?
Useful content
Why do you need to pay off their debt? Can't you just refinance the debt or take over the debt and put it on your balance sheet?
Hi, when you say "50p" what does "p" stand for.
My guess is "per" as in $50 per share
It means 50 pence - i.e. £0.5
Basically it comes down to debt
How do you calculate Enterprise Value for a private company??
Can EV be negative?
And does it mean cash is > debt?
yes, more commonly in banks
Enterprise value is bullshit. Debt to be the factored in valuation as an asset. A good way tttttooo invest in being broke. EV factors in debt as a true value of a company , in other words they say the more you are in debt the more you have????? Think about it.
Super basic. No discussion about participations, minorities, non core assets