Enterprise Value and Equity Value

Core

Bridge market value, net debt, minority interest, associates, and diluted shares.

Start from enterprise value, the value of the core operations to all capital providers. Subtract debt, preferred stock and non-controlling interest, which are claims of other investors. Add cash and non-operating assets such as equity investments. The result is equity value for common shareholders; dividing by diluted shares gives the implied share price. Running the steps in reverse takes you from equity value to enterprise value.

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