What's the formula for enterprise value? sorry, value, please, trouble, someone

BC_MBA_student

I'm sorry to trouble you, but I've had troubles with EV enterprise value. Can someone please help me with the formula?

maryli

It is for overall company rather than just common stock assuming debt and preferred stock are efficiently priced.
It is EV/EBITDA
EV= MV of equity+ MV of pref stock + MV of debt - cash & investment

sameeragarwal

usually price multiple like EBITDA/EV or is it EV/EBITDA

5566

Can you remind me where EV is used again?

scarecrow

thanks

bp-you're gonna kill it tomorrow!