Enterprise & Equity Value
You ran an unlevered DCF and got enterprise value. How do you get to an implied share price?
Model answer
Take EV, then run the bridge in reverse to equity value: subtract total debt, subtract preferred, subtract minority interest, add cash (and add/subtract other non-operating items). That gives equity…
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More from Enterprise & Equity Value
- What's the difference between enterprise value and equity value?
- Why do you subtract cash when going from equity value to enterprise value?
- Why is enterprise value capital-structure neutral but equity value is not?
- A company issues $100 of new debt and holds the cash on its balance sheet. What happens to EV and equity value?
- Which valuation multiples pair with enterprise value vs. equity value, and why?
- How do you calculate fully diluted shares?
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