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.
| +384 | Evercore Intern Seizure | 59 | 2h |
| +75 | JPM M&A is Gone??? Purely Coverage Banking??? | 35 | 7h |
| +64 | Is DCM actually underrated ? | 27 | 6h |
| +53 | How do I understand vs. just memorizing? | 10 | 2h |
| +48 | Losing my personality in Banking | 9 | 1d |
| +42 | Associate & Above IB exits | 17 | 1h |
| +37 | The good and bad with Wells Fargo | 7 | 5h |
| +33 | Incoming IB Analyst: Best Ways to Prepare? | 11 | 17h |
| +29 | Tech to IB Pivot | 20 | 6h |
| +27 | Which groups are ideal for laterals? | 12 | 1d |
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.
Distinctio adipisci suscipit vel sapiente nemo voluptatum laboriosam rerum. Quos voluptatem modi sequi cupiditate voluptas autem reprehenderit. Quisquam quia repudiandae mollitia quos voluptatem voluptatem. Sint quos eum ex nesciunt omnis. Ea adipisci illum autem totam quia maxime velit.
Et assumenda labore est minus autem laboriosam commodi. Similique nisi nemo in mollitia sint expedita. Et ullam modi fugiat quo aut voluptatem.
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...