RE:Market Cap (share price) vs. Enterprice Value Sailor8 wrote
Market Cap (share price) vs. Enterprice Value
Pretium (PVG):
Valuation Measures
Market Cap (intraday) 1.7B
Enterprise Value 2.25B
Thus market Cap (shareprice) at PVG should be 32 % higher than now to reflect correct Enterprice Value
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Compare for Example Kirkland (KL):
Valuation Measures
Market Cap (intraday) 8.21B
Enterprise Value 7.56B
Thus market Cap (shareprice) at KL should be 8 % lower than now to reflect correct Enterprice Value
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I was reading about how enterprise value is calculated. It is basically the cost of acquiring a co.
Because cash on hand can be used to reduce the eventual cost it is generally subtracted from enterprise value, (kind of counter intuitive I thought but I see why).
KL has a large and growing cash balance that can be quickly used if an oppurtunity arises or used in exploration so I consider it an great asset. AS you said PVG has some recent new drill results that are very encouraging. KL also at near their Macassa mine.
I like your analysis. From what I calculated it suggest PVG should be trading about C $4 higher right now.
disclosure: PVG is my 2nd highest PM position after KL and I think they both have a great future and super great if gold prices rise.