In previous posts, we addressed the equity and debt components in the enterprise value formula: EV = Equity + Debt – Cash & Marketable Securities + Preferred Shares + Minority Interest + Asset Retirement Obligations + Capitalized Operating Leases + Pension Obligations – Investments (including investments in affiliates, long-term investments) +
Trading Comparables
Spreading Investment Banking Comps: Net Debt
Spreading Investment Banking Comps: Calculating Fully Diluted Market Capitalization
We will explain the most important part of spreading comps for investment bankers in this post. The brunt of conducting comparable companies analysis is to calculate the appropriate enterprise value, which will have certain components which are "live" and certain components that are the latest historical financial statement data. So to
Spreading Trading Comps for Investment Banking
Why Look at Comparable Companies for Valuation In the investment banking interview, new candidates need to know that the comparable companies approach is one of the primary valuation methods. It is also the most commonly used for benchmarking companies and are included in almost every client presentation - even if only