Million else we have like unsanitary multiplied to get the equity that stock price time shares outstanding million dollars in the market cap hand you get from that woody value to enterprise value we take the equity value and we’re here and the next day of the business total debt less cash oh I wish I had included a place for Dad hears total debt let’s let’s start to it let’s include.
The total debt here this is total debt that’s going to be used for a calculation later but at least put total debt on to avoid Property Valuation Perth so many calculations in one cell so the total debt the year in time that will go to the balance sheet for my guess is that schedule and the total that is going to be the long-term debt to capital leases plus long-term debt plus the short term portion of capital leases plus a lot of going to the one here plus the shorter than just the five pieces of debts that’s.
Total debt that’s not met yet little Dell it is going to be used for web but net debt is total debt less cash and the form of for enterprise statelessness’s your equity value plus net debt plus minority interests as well there’s other things that go into enterprise by you and talk about it I’ll give it an investment a good investment banking in to be questioned after this will help flush out why what are your interests and slowly expanding on when to provide value should be illegal over the weekend but will slowly to get to that but the the true value of enterprise value the two different values of our cap plus net.
Debt plus some other things other things including minority interests I’ll explain one with so to make it simpler and calculate here yet dead you know this is the low net debt is going to be equal to the total debt plus re interest little balance you not going to add a non-controlling.
parentheses to the power of the you want to anger the reference to the weighted average cost of capital or two are now ten percent so that we can easily copy this to the right we’re going to discount each cash flow any question of chemotherapy do and so the total net present value of the business over five years is a some of these discounted cash flows million dollars is the present value of the business for the next five years that’s the idea and so we’re going to add this to the terminal value we’re going to catch up to evaluate one using the evening . method one using the opportunity moments.
For that you can dominate it we take the final you’re even up like a diva job so that’s going to be equal to even plus the United we’re going to apply multiple to this will give us the terminal value and expected value of the business after into infinity we’re going to discount that to read the question is with multiple to use and sometimes look at the cops we didn’t do the cops yet we can also calculate the current enterprise value of the business let’s do that as a default in the beginning.
we can calculate the current enterprise value lords I want to use some things on the record this box basically for calculating the cost of capital which will discuss the next week but at least these are the devil’s doctor has to have the equity value doesn’t help us calculate the current market cap of the business that we can you relax I want thisthis . west we have hard-coded if you remember on the income statement on the surface it can i want to calculate the market cap the enterprise value more on the share question I’m gonna pull in the diluted shares outstanding mark a black multiples one look at the diluted shares outstanding most current which is the one that we projected if you remember using the tragedy method in the very first week isa little chair accomplished total just and that’s the one you want to calculate.