Enterprise value

Enterprise value is market capitalization plus debt minus cash: the price of buying the whole business, lenders included. EV/EBITDA compares companies with different debt loads fairly, which matters more as rates rise and debt costs more. The annual report on EDGAR has every number.

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In MochaLearnLearn how to read US earnings
  • Market capitalizationMarket capitalization is share price times shares outstanding, the market's price for the whole company. Index weights…
  • EBITDAEBITDA is earnings before interest, taxes, depreciation and amortisation: operating profit with debt costs and…
  • Price-to-sales ratioThe price-to-sales ratio is market value divided by annual revenue, used for companies with no profit yet, where P/E…
  • 10-K and 10-QA 10-K is the audited annual report a US listed company files with the SEC; a 10-Q is the unaudited quarterly version.…
  • Dividend yieldDividend yield is the annual dividend divided by the share price; a $2 dividend on a $50 stock is 4%. It rises when…
  • Dot plotThe dot plot is the chart of where each Fed official expects the policy rate to be over the next few years, one dot…

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