In this Enterprise Value lesson we take a look at the rules of thumb to figure out what should be added or subtracted when you calculate it. <br />By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" <br />This also covers a short case study based on Vivendi (a leading media/telecom conglomerate based in France), <br /> <br />Everyone knows the definition of Enterprise Value: Take Equity Value, add Debt and Preferred Stock (and others), and subtract Cash... <br /> <br />But WHY do you do any of that? <br /> <br />Enterprise Value represents the value of the company's CORE BUSINESS OPERATIONS to ALL THE INVESTORS in the company - equity, debt, preferred stock, etc. <br /> <br />So focus on OPERATIONAL ITEMS and ALL INVESTORS when thinking about what to include... and what to exclude! <br /> <br /> <br />http://www.mergersandinquisitions.com/
