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
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