When you are calculating EV, do you subtract both Cash & Cash Equivalents and Short-term Investments? Or would you ignore short-term investments for the EV calculation and just subtract out the Cash & Cash Equivalents line item?
| +114 | Analysts bitching on WSO | 26 | 11h | |
| +114 | How are women treated in IB? | 68 | 1h | |
| +66 | College Transitions updated 2024 IB ranking | 24 | 4h | |
| +65 | How to Not Feel Anxious About SA Internship | 24 | 1d | |
| +53 | In denial about SA 2025 Offer | 12 | 1d | |
| +51 | A Guide to HK Investment Banking - 10 Most Frequently Asked Questions (2024) | 4 | 3h | |
| +48 | Does my budget look right? Fresh grad | 28 | 1d | |
| +43 | 5 days/wk | 19 | 4d | |
| +34 | 2024 Analyst Bonus Thread | 18 | 5d | |
| +26 | UBS = U Be Shite in Americas? | 4 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
depends on the industry. easiest thing to do is to find an equity research report (big research house: MS have good reports) and see how they calculate it. another good way is to see how it calculated in capiq and bloomberg. now my personal approach would be to read the notes and see how short they are( less than 3 months then absolutely add them), if more than that, see how the company calculates net debt in their filings or presentations. I would put it anyway and then footnote that cash and cash equivalents include x and y investments.
Thank you very much! that was very helpful
Soluta sequi harum omnis qui. Necessitatibus in quo sint saepe itaque itaque architecto.
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...