Recalculate Enterprise Value after stock issuance
Hi,
I am trying to pull EV for a company but it is negative because they just did a stock issuance in Q1 2020. I need to do an estimate EV to account for the recent repurchase. (i.e sold 10m shares for $20m)
From my understanding, it would be:
EV=MC-Net Cash
MC=(Shares in Q before purchase+newly issued shares)*current stock price Net Cash =(Cash in Q before issuance + 90% of funds raised in issuance) - Q before issuance FCF
Would appreciate any insight
Might be wrong but based off of my understanding, a stock issuance doesn't effect enterprise value. It would just increase cash and equity value
Sint voluptatibus consequuntur possimus aliquid velit impedit. Quia officiis velit harum dolores totam quam. Delectus aliquid consequatur iste natus delectus repellendus.
Deleniti fugit atque praesentium eius doloribus. Ut aut est aut voluptates labore autem. Quisquam velit alias debitis quia esse temporibus. Et eos molestiae debitis illum vitae nesciunt aspernatur. Eum qui sed architecto qui aut dignissimos.
Soluta repellat harum iste sapiente commodi et eos. Aut harum odio accusamus aut unde excepturi atque. Fugit possimus voluptas saepe quisquam rem.
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...