Equilest

MARCH 28, 2025

This pivotal metric is typically calculated by summing the market capitalization and net debt of the organization. Understanding equity value is essential as it provides a clear indication of what shareholders truly own in the business, reflecting the residual claim on assets once all debts and obligations are settled.

Equity 40

Equity Net Debt Enterprise Value Capital Structure 40

Valutico

SEPTEMBER 22, 2023

This is accomplished through methods like Comparable Company Analysis, Precedent Transaction Analysis, and Market Capitalization, which collectively offer insights into the company’s value within the context of the broader market landscape. It represents the total market value of the company’s equity.

Discounted Cash Flow 52

Discounted Cash Flow Intangible Assets Book Value Asset-based Approach 52

Valutico

AUGUST 23, 2023

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

AUGUST 10, 2023

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Musings on Markets

OCTOBER 25, 2022

Accounting Inconsistencies : I have written about the inconsistency in how accountants calculate capital expenditure at firms with significant investments in intangible assets and R&D, and that inconsistency can play out in your FCFE computation.

Dividends 107

Dividends EBITDA Equity Start-ups 107