Formula
Enterprise Value =
Market Cap + Market Value of
Preferred Stock +
Long-Term Debt +
Current Portion of Long-Term Debt +
Minority Interest -
Cash and cash equivalentsOrigen Financial, Inc. ev Calculation
* All numbers are in millions except for per share dataOrigen Financial, Inc. Annual Data
| Dec00 | Dec01 | Dec02 | Dec03 | Dec04 | Dec05 | Dec06 | Dec07 | Dec08 |
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| ev |  | | | | | | | | |
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Origen Financial, Inc. Quarterly Data
| Sep06 | Dec06 | Mar07 | Jun07 | Sep07 | Dec07 | Mar08 | Jun08 | Sep08 | Dec08 |
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| ev | | | | | | | | | | |
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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* All numbers are in millions except for per share dataOrigen Financial, Inc. Annual Data
| Dec00 | Dec01 | Dec02 | Dec03 | Dec04 | Dec05 | Dec06 | Dec07 | Dec08 |
|---|
| ev | | | | | | | | | |
|---|
Origen Financial, Inc. Quarterly Data
| Sep06 | Dec06 | Mar07 | Jun07 | Sep07 | Dec07 | Mar08 | Jun08 | Sep08 | Dec08 |
|---|
| ev | | | | | | | | | | |
|---|
European Shorting
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