GREY:STPJF - Post by User
Comment by
monzieon May 09, 2014 2:48pm
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Post# 22545295
RE:RE:RE:RE:RE:RE:Pi Financial
RE:RE:RE:RE:RE:RE:Pi Financial
Actually Duxing I am basing it strictly on the enterprise value (market cap plus debt minus cash on hand).
As explained on Investopedia:
Investopedia explains 'Enterprise Value - EV'
Think of enterprise value as the theoretical takeover price. In the event of a buyout, an acquirer would have to take on the company's debt, but would pocket its cash. EV differs significantly from simple market capitalization in several ways, and many consider it to be a more accurate representation of a firm's value. The value of a firm's debt, for example, would need to be paid by the buyer when taking over a company, thus EV provides a much more accurate takeover valuation because it includes debt in its value calculation.