When calculating enterprise value, do you include restricted cash? For my particular company, the restricted cash serves as cash collateral for its outstanding LCs
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don't most companies have a minimum cash balance that they need to keep throughout the yr to purchase inventory, use or sg&a, LC's, etc? it wouldn't make sense to include that in net debt as the restricted cash could not be touched in an acquisition scenario.
When subtracting out cash from the total enterprise value I would only remove the cash portion that is a current/liquid asset. If it's restricted for a specific use I would classify that as Cash for X or Collateral Against Outstanding LCs or something. So I guess it's like Debt+Equity+Preferred Stock+minority interest, etc-NET CASH(Free Cash-Less Restricted Cash)
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