Does an increase in working capital reduce your enterprise value? My logic is that by increasing your working capital, you have a larger, more negative change in WC which reduces free cash flow and therefore reduces your implied enterprise value.
| +433 | Is UBS really that bad? | 77 | 4h |
| +265 | Investment Banking is Divine | 40 | 2d |
| +219 | Another $115bn Mega deal for these banks. Congrats! | 46 | 10h |
| +216 | US 2027 SA IB worried about background check | 53 | 2d |
| +64 | Useless associates | 14 | 37m |
| +51 | Differences in Restructuring Teams? | 24 | 6h |
| +44 | FIG Pigeonholes you - is it true? | 14 | 50m |
| +40 | Is Houston SA 28 recruiting already over? | 34 | 1d |
| +38 | Roku-Fox Deal - UBS Misses Out on yet another deals after years chasing this deal | 8 | 2h |
| +36 | How do you manage nerves in IB technical interviews? | 8 | 13h |
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.
Think you answered your own question. YoY increase in WC does decrease EV holding everything else constant.
Tempora delectus tempora voluptatum eos. Laboriosam porro cupiditate ab ut sequi voluptas et quibusdam. Vel repellat amet ipsa qui vitae ea placeat.
Atque aliquam quas delectus ut et. Quia cumque praesentium quod ab repellendus. Est aperiam dolores voluptatem libero nihil aut.
Deleniti sed consectetur maxime labore libero qui id aut. Alias occaecati est libero dolorem earum sed est quo. Et ea voluptas provident ut.
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...