Q: Could you please elaborate on an Enterprise Value as a benchmark in establishing a value of a company?
I am usually looking at the Book Value but maybe the Ent.Val is more accurate?
For example : Is it correct to assume that if the Market Cap value is lower than the Enterprise Value
the market is trading at a discount to the true value of the company and it might be
potentially a good buy (considering that other ratios like P/E, Revenue growth etc. are also favourable) ?
Huge thank you for your great market insight.
Aga
I am usually looking at the Book Value but maybe the Ent.Val is more accurate?
For example : Is it correct to assume that if the Market Cap value is lower than the Enterprise Value
the market is trading at a discount to the true value of the company and it might be
potentially a good buy (considering that other ratios like P/E, Revenue growth etc. are also favourable) ?
Huge thank you for your great market insight.
Aga