Implied EV
How do you calculate an implied EV of a transaction? Is this the EV of the target?
Implied EV Calculation
When trying to calculate the implied enterprise value, there are multiple ways to get there. WSO members provided the following formulas:
- Implied EV of a transaction = market cap + net debt
- Deal Value = amount Paid
Eq Value = Deal Value/% acquired (100%)
Net Debt= Net Assumed Liabilities
Implied EV= Eq Value + Net Debt which already takes into account Cash - Target Purchase Price / Target EBITDA = EV/EBITDA
Target Purchase Price = Fully Diluted Market Cap (premium incorporated) + Debt + Minority Interests + Preferred Stock - Cash
Implied EV = EV/EBITDA * EBITDA
Recommended Reading
Target Purchase Price / Target EBITDA = EV/EBITDA
Target Purchase Price = Fully Diluted Market Cap (premium incorporated) + Debt + Minority Interests + Preferred Stock - Cash
Implied EV = EV/EBITDA * EBITDA
I'm making it up as I go along.
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