Company’s net worth
How to calculate a company’s net worth? Is it just CA – CL? Do you include their Mkt Cap (share price * share o/s) in there?
How to calculate a company’s net worth? Is it just CA – CL? Do you include their Mkt Cap (share price * share o/s) in there?
Career Resources
http://www.investopedia.com/terms/e/enterprisevalue.asp#axzz2E29pVw3O (watch the video) (this is a simplified explanation btw)
You would need to look at total assets and liabilities, not just current (I assume CA and CL meant current assets and current liabilities)
Enterprise value = common equity at market value + preferred equity at market value + minority interest at market value, if any + debt at market value + unfunded pension liabilities and other debt-deemed provisions - associate company at market value, if any - cash and cash-equivalents.
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