Category: Finance

Do you want to invest in companies and reap financial rewards? Each investment opportunity represents an ownership interest in a company and can be a great

The term ownership interest describes the degree to which a company acquires voting stock in another, including controlling, significant influence and passive.

A business ownership stake represented by an investment opportunity is: shares or stocks.Investors become owners of a firm by purchasing its stocks or shares. They

Here's a guide to types of investments, how they work and what role they can play in a portfolio. We look at stocks, bonds, ETFs and more.

It’s important to make a plan to reduce your debt. Here are three steps to help you pay down your debt.

Learn how to prioritize your debts so you can pay off debt that will improve your credit score first. Review how revolving and installment debt impacts credit.

Equity Value to Enterprise Value Bridge illustrates the relationship between a company’s equity value and enterprise value.

Unlock the power of business valuation with enterprise value: definition, calculation methods, and practical applications in finance and investing.

Why do we subtract Investment in Associates when computing Enterprise Value? EV = MV of Equity + MV of Debt + MV of Preferred Stock – Cash + Minority Interest – Investment in Associates Investment in associates is basically a minority active stake in a company Now think of it from a multiple perspective Say EV/EBITDA Assume a 30% stake in an associate company The proportionate 30% income from the associate investment is only reflected in the Net Income of the consolidated entity (not in EBITDA) But in enterprise value computation, we have the Market value of Equity – which includes the market value of this 30% stake in the associate company Hence making the multiple inconsistent (numerator vs denominator) To avoid this, we remove this 30% equity investment from the EV And now the multiple is apples to apples| 16 комментариев в LinkedIn

Study BIWS Equity Value, Enterprise Value, and Valuation Metrics and Multiples flashcards from Uno Dos's class online, or in Brainscape's iPhone or Android app. ✓ Learn faster with spaced repetition.