4 ms·
Better count "enterprise value" than market cap, as that's the price the company is worth.
by deepsun 4y ago
Better count "enterprise value" than market cap, as that's the price the company is worth.
- BlueTemplar 4y agoWhat is the difference and where can you see it ?
- deepsun 4y agoHere is full info: [1] As I see it, market cap/valuation _should_ resemble the price you'd need to pay to buy a company, but it often is not. E.g. a company has marketcap of 10B, but has 30B in liquid cash on hand. It's clear it cannot be bought for 10B. Or the other way around, the company has 30B in liabilities -- the company should pay you 20B to be bought. [1] https://www.investopedia.com/terms/e/enterprisevalue.asp https://www.investopedia.com/terms/e/enterprisevalue.asp