{"id":2165,"date":"2024-08-26T09:10:53","date_gmt":"2024-08-26T05:10:53","guid":{"rendered":"https:\/\/eoninvestment.com\/?p=2165"},"modified":"2024-08-26T09:10:53","modified_gmt":"2024-08-26T05:10:53","slug":"net-enterprise-value","status":"publish","type":"post","link":"https:\/\/eoninvestment.com\/ka\/2024\/08\/26\/net-enterprise-value\/","title":{"rendered":"Net Enterprise Value"},"content":{"rendered":"\n

Authors* conducted an experiment where 100 professionals were tasked with calculating the EV (Enterprise Value) of a specific organization, resulting in 12 different answers.<\/p>\n\n\n\n

It is critically important to calculate the EV metric correctly when using multiples for valuation. There are two general rules:<\/p>\n\n\n\n

    \n
  1. Any non-operating asset that does not contribute to the creation of EBITA (Earnings Before Interest, Taxes, and Amortization) should be excluded from the EV.<\/strong> This includes excess cash, surplus real estate, unconsolidated subsidiaries, etc.<\/li>\n\n\n\n
  2. Any financial liability that is to be settled using EBITA should be included in the EV.<\/strong><\/li>\n<\/ol>\n\n\n\n

    The table shows three companies:<\/p>\n\n\n\n

      \n
    1. The first company has only operating assets.<\/strong><\/li>\n\n\n\n
    2. The second holds excess cash and unconsolidated stakes in subsidiaries.<\/strong><\/li>\n\n\n\n
    3. The third has non-controlling interest liabilities.<\/strong><\/li>\n<\/ol>\n\n\n\n

      The table demonstrates that ignoring these details can lead to significantly erroneous conclusions. For instance, in the case of the second company, excess cash and unconsolidated stakes should be subtracted from the EV, while for the third company, non-controlling interest liabilities should be included in the EV.<\/p>\n\n\n\n

      #VALUATION<\/a> \u2013 Measuring and Managing the Value of Companies, 7th Edition
      McKinsey & Company,
      Tim Koller, Marc Goedhart, David Wessels<\/p>\n\n\n\n

      \"\"\/<\/p>\n\n\n\n

      \u10e0\u10dd\u10d2\u10dd\u10e0 \u10d3\u10d0\u10d5\u10d7\u10d5\u10d0\u10da\u10dd\u10d7 EV<\/h2>\n\n\n\n

      \u10db\u10d0\u10d9\u10d9\u10d8\u10dc\u10d6\u10d4\u10da\u10d4\u10d1\u10db\u10d0 \u10e9\u10d0\u10d0\u10e2\u10d0\u10e0\u10d4\u10e1 \u10ea\u10d3\u10d0 – 100 \u10de\u10e0\u10dd\u10e4\u10d4\u10e1\u10d8\u10dd\u10dc\u10d0\u10da\u10e1 \u10d3\u10d0\u10d0\u10d5\u10d0\u10da\u10d4\u10e1 \u10d9\u10dd\u10dc\u10d9\u10e0\u10d4\u10e2\u10e3\u10da\u10d8 \u10dd\u10e0\u10d2\u10d0\u10dc\u10d8\u10d6\u10d0\u10ea\u10d8\u10d8\u10e1 EV-\u10e1 \u10d2\u10d0\u10d0\u10dc\u10d2\u10d0\u10e0\u10d8\u10e8\u10d4\u10d1\u10d0, \u10d3\u10d0 \u10e8\u10d4\u10d3\u10d4\u10d2\u10d0\u10d3 \u10db\u10d8\u10d8\u10e6\u10d4\u10e1 12 \u10d2\u10d0\u10dc\u10e1\u10ee\u10d5\u10d0\u10d5\u10d4\u10d1\u10e3\u10da\u10d8 \u10de\u10d0\u10e1\u10e3\u10ee\u10d8…<\/p>\n\n\n\n

      \u10db\u10d0\u10db\u10e0\u10d0\u10d5\u10da\u10d4\u10d1\u10d8\u10d7 \u10e8\u10d4\u10e4\u10d0\u10e1\u10d4\u10d1\u10d8\u10e1\u10d0\u10e1 \u10d9\u10e0\u10d8\u10e2\u10d8\u10d9\u10e3\u10da\u10d0\u10d3 \u10db\u10dc\u10d8\u10e8\u10d5\u10dc\u10d4\u10da\u10dd\u10d5\u10d0\u10dc\u10d8\u10d0 EV \u10db\u10d0\u10e9\u10d5\u10d4\u10dc\u10d4\u10d1\u10da\u10d8\u10e1 \u10e1\u10ec\u10dd\u10e0\u10d0\u10d3 \u10d3\u10d0\u10d7\u10d5\u10da\u10d0. \u10d6\u10dd\u10d2\u10d0\u10d3\u10d8 \u10dd\u10e0\u10d8 \u10ec\u10d4\u10e1\u10d8 \u10d0\u10e1\u10d4\u10d7\u10d8\u10d0:<\/p>\n\n\n\n