Enterprise value less than the market cap may look like a bargain. But the devil is in the detail
Last updated: 08-Jul-2024•Danish Khanna
Market capitalisation is frequently used to ascertain the size of a listed company. It is obtained by multiplying the share price by the numbers of shares. Some investors think that the market cap denotes what one needs to pay to buy a company. But that's not always true. If you want to buy a listed company, you need to pay the enterprise value (EV). It is calculated as
A simple financial framework to build wealth
5 min read•By Anushka Vats
How to choose the right index fund
3 min read•By Value Research Team
New episodes every Friday
Kahneman's final lesson
The Nobel laureate's last decision offers profound insights for investors
Other Episodes
Concentration isn't for everyone
Buffett's wisdom requires expertise most of us don't have
The sound of pessimism
Bearish voices grow louder when markets crash, but history favours the patient investor
Perspective in a panic
Market dips hurt, but history offers comfort
The wisdom of inattention
Market pessimism creates opportunities, but only for those who've trained themselves to yawn
Harvest your losses, reap tax savings
3 min read•By Value Research Team
Our rating system has guided millions of investors in the past 20 years.
Widely read:
