Equity Valuation

Enterprise Value

Definition

What is Enterprise Value?

The value of a company's operations attributable to debt and equity investors, commonly market capitalisation plus net debt and other claims.

Example in practice

A ₦100 billion market cap plus ₦20 billion net debt gives roughly ₦120 billion enterprise value.

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Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

Earnings per share assuming potentially dilutive securities convert into ordinary shares.

Earnings per share calculated using actual weighted average ordinary shares outstanding.

Cash generated or used by a company's core operations.

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