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Market cap = Equity Value ? - Help
Hey guys, hope you all are fine. Please help me with this question: Company A does an IPO and issues 100,000 out of 400,000 shares and the share price is $20. So then shares outstanding is 100,000 and market cap is $2 million . In my view the actual value of the firm is $8 million, since 1/4 is...
Confused about Market Cap
These are probably dumb questions but I'm confused. 1. The news announced that Amazon hit a $1 trillion dollar valuation this year when its market cap hit $1 trillion but market cap is just shares outstanding x share price. Shouldn't this mean that it was valued at more than a $1 trillion at the...
Share Count
Hi, fellow monkeys! I have several questions on the very basic matters that I am confused with. Let's imagine there is Company A with 900 shares On issue by the end of 2017 (a figure displayaed in Annual Report). Also I know that Company A acquired 100 of its own shares (i.e. they became Treasury...
Institutional ownership: does a move to a lower market cap trigger a sell-off by institutions?
Hello WSO community, I am looking at a great GARP stock that due to the poor short-term performance & guidance and overall market turbulence moved down a notch below $1B market cap. From what I was told, institutional investors, especially big mutual funds, don't normally invest in small cap stocks...
Why can't you use private companies as part of your public company comperables analysis?
I understand that it wouldn't make sense to use a private company in your calc of cost of eq or wacc BC private companies don't have values for market cap or beta, but why couldn't you use private companies in public comps ? Is it just because it's literally called "public" comps? Thanks in advance
Total investment dollars
Kind of a broad question - What are the largest sources of investment dollars and what is the total value of investable securities? Some quick googling came up with total worldwide equities market cap ~$52 trillion, pensions having ~$15 trillion total assets (not just equities) and insurance...
How gay are bankers?
Now that I have your attention, i wanted to ask if market cap represents 100% equity? If a company goes public, is all of its ownership broken up into shares and distributed among its owner with a percentage of that going on the stock market?
Two companies merge, what is the resulting market cap?
I got the following question in my interview and I'm stumped trying to think of the correct answer. If two companies A and B with market cap 1bn merge, what is the resulting market cap if company B's shares are valued at a 50% premium? I was thinking along the lines of, if it's an all cash/debt,...
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Market Cap & Cash
Hey guys, had a quick question about the relationship between market cap and cash on the balance sheet . When you value a company and look at P/E multiples, do you guys simply look at market cap/earnings or (market cap - excess cash)/earnings? In other words, should excess cash (cash not necessary...
How do public shares work? - Company going public?
I am getting confused on exactly what it means for a company to be public. If people can help me understand this concept that would be great! Thanks in advance. So say me and a friend each own 50% of a private company. Now that we want to take the company public first and later have a secondary...
How do public shares work?
I am getting confused on exactly what it means for a company to be public. If people can help me understand this concept that would be great! Thanks in advance. So say me and a friend each own 50% of a private company. Now that we want to take the company public first and later have a secondary...
A Tangled Web of Values: Enterprise value, Firm Value and Market Cap
Question about market cap
Today I saw in an article online the following statement: "Almost half of Zynga's roughly $2.6 billion market cap consists of $1.28 billion in cash" Can someone explain to me how the second part of the statement relates to the first? To my understanding market cap = total outstanding shares x stock...
Reason for differences in Market Cap number on stock quote sites - Why?
e.g. - On Finviz.com, WAB has a marketcap of $4.33B but has a market cap of $4.26B. Why?
Equity value / Cash / Enterprise value
Hey everyone, Quick question cause I am confused. If a company has 100 shares in the market with price of 1 dollar (or marketcap of 100 dollars) and cash of 50 dollars, and debt of 10 dollars. The EV is 100+40 = 140 1) Why is it that having cash actually reduces the EV than having debt? 2) When a...
Implied market cap
What does the implied market capitalization from P/E an P/B tell you? Thanks
Capitalization - Market Cap vs. Total Equity
I've always learned that total capitalization was calculated as Debt + Market Cap (Equity). I just saw a model today which used Total Equity (the entire Shareholders' Equity section of the Balance Sheet) instead of market cap. I would really appreciate it if someone could help me out on this issue.
Market Cap - Interesting visualisation
http://alphaville.ftdata.co.uk/lib/inc/getfile/41…
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