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53.76 (1y: +25%)
Market Cap 3.32 B P/E(ttm)
Enterprise Value P/B
ACWI- (USA)
iShares MSCI ACWI Index Fund
  • Currently 1/5
Business Predictability Rank: 1-Star (On Watch)
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
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Top Ranked Predictable Companies
$53.76
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Definition

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

Enterprise Value = Market Cap + Market Value of Preferred Stock + Long-Term Debt + Current Portion of Long-Term Debt + Minority Interest - Cash and cash equivalents

Formula

Enterprise Value = Market Cap + Market Value of Preferred Stock + Long-Term Debt + Current Portion of Long-Term Debt + Minority Interest - Cash and cash equivalents

Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the market cap because he immediately owns the cash once the transaction goes through.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its market cap. In this case the investor is basically getting the company for free and get paid for that.

Related Terms

Market Cap, Preferred Stock, Long-Term Debt, Current Portion of Long-Term Debt, Minority Interest, Cash and cash equivalents

Financial Dictionary

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