Enterprise value: the filed components

mentor: Buying a whole company means buying its equity AND inheriting its debt — and pocketing its cash. Enterprise valueDefinitionEnterprise valueWhat it would cost to own the whole business: the equity's market value plus the debt the buyer assumes, minus the cash that comes along with the keys. It is the numerator of the capital-structure-neutral multiples (EV/EBITDA, EV/Sales), because it prices the enterprise regardless of how the current owners chose to finance it.EV = Market cap + Total debt − Cash & equivalentsDrivers: Market cap · Debt · CashFull definition → prices that whole: market capitalizationDefinitionMarket capitalizationThe market's price for all of a company's equity: the share price times the shares outstanding. It is the equity leg of enterprise value and the denominator convention for index weightings — a market quantity that moves every trading day, not a filed figure that moves every quarter.Market cap = Share price × Shares outstandingDrivers: Price · Share countFull definition → plus total debt, minus cash. Bankers quote multiples off EV because it is capital-structure-neutral — two companies with identical businesses but different borrowings compare cleanly.

A filing gives you two of the three components. Below are the BORROWING lines Apple presents on its balance sheet — commercial paper and term debt — plus the cash and short-term marketable securities, all from one instant. Assemble them, net the cash and the near-cash securities, and notice two honest limits: the debt perimeter is a choice (finance-lease liabilities are filed outside these lines, and analysts differ on counting them), and market capitalizationDefinitionMarket capitalizationThe market's price for all of a company's equity: the share price times the shares outstanding. It is the equity leg of enterprise value and the denominator convention for index weightings — a market quantity that moves every trading day, not a filed figure that moves every quarter.Market cap = Share price × Shares outstandingDrivers: Price · Share countFull definition → takes a share price no filing carries.

Total borrowings = commercial paper + current portion of long-term debt + long-term debt. Net debtDefinitionNet debtTotal debt minus cash and equivalents — the debt that would remain if the company paid down borrowings with the cash on hand today. It is the bridge between market capitalization and enterprise value, and the quickest read on balance-sheet risk: negative net debt means the cash pile exceeds the borrowings.Net debt = Total debt − Cash & equivalentsDrivers: Borrowing · Cash generation · Capital returnsFull definition → = total borrowings − cash and equivalents − short-term marketable securities — the data-vendor convention. Long-term marketable securities stay out (the filer does not class them as near-cash); counting them too turns Apple net cash, which is why the perimeter is an analyst's call. Work in billions of dollars, two decimals. EVDefinitionEnterprise valueWhat it would cost to own the whole business: the equity's market value plus the debt the buyer assumes, minus the cash that comes along with the keys. It is the numerator of the capital-structure-neutral multiples (EV/EBITDA, EV/Sales), because it prices the enterprise regardless of how the current owners chose to finance it.EV = Market cap + Total debt − Cash & equivalentsDrivers: Market cap · Debt · CashFull definition → — market capDefinitionMarket capitalizationThe market's price for all of a company's equity: the share price times the shares outstanding. It is the equity leg of enterprise value and the denominator convention for index weightings — a market quantity that moves every trading day, not a filed figure that moves every quarter.Market cap = Share price × Shares outstandingDrivers: Price · Share countFull definition → + net debt — waits on a price.