Enterprise value is a figure that, in theory, represents the entire cost of a company if someone were to acquire it. Enterprise value is a more accurate estimate of takeover cost than market capitalization because it takes includes a number of important factors such as preferred stock, debt, and cash reserves that are excluded from the latter metric.
How is Enterprise Value Calculated?
Enterprise value is calculated by adding a corporation’s market capitalization, preferred…
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Posted on July 24, 2009 at 12:49pm
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