No debt, highly positive cash balance. Equity Value > Enterprise Value?
As can be seen in Year 19 for example. If a company has zero debt, but big cash balances ($7,105 in this case), would equity value be larger than enterprise value?
How can I make sense of this logically?
Would it be that if the company were to sell on a multiple, the retained earnings (the source of cash) would be returned to the equity holders in addition to the sale price, whereas the buyer would just pay the EV?
Cum aut error quam reiciendis illum perferendis deserunt velit. Voluptate et et corrupti voluptas. Ut maxime itaque facere. Ut omnis est totam. Maiores aperiam illum eum ipsam consequatur. Et est soluta voluptate delectus dolore qui quae ratione. Ea velit et et libero.
Aut sint ut illum. Aut est quia inventore voluptatem. Est et et ut laboriosam ad ea cumque. Harum reprehenderit provident natus commodi dolorem unde sunt hic.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...