Thank you. Your words mean a lot to us. Pls do tell your friends about our channel too... BTW - have you made you FREE financial plan already? If not, pls visit investyadnya.in
That is because , cash is with the company and you are recieving cash freely . For example I'm buying a company with market cap 100 crores and debt 10 crores. Total EV becomes 110 crores. But if the company is having 50 crores cash then, effectively I'm paying only 60 crores for the company. Im recieving the cash reserves also with the company. Cash is already a part of balance sheet just like the debt. Because debt is a burden I'm adding it to EV and because cash is a relief I'm subtracting it
Very very helpful video, Thank you for this video 👌❤️. I will waiting for your valuation series, please bring as soon as possible. One more request please bring video on infibeam Avenue 🙏
In this reliance example - does that mean if I want to buy reliance company then I would need to pay them their EV value rather than market capitalisation value? If yes, then how does it make sense that way ? More the debt company has more the EV value which means we are valuing company more if the company has more debt? CAN you please clarify?
But the market cap fluctuates a lot and if I say that mkt cap is not a proper way to value a company then EV is also not a proper way to consider value. Mkt Cap is based on share price and share price that depend on demand & supply fluctuates every day
That mean hul valuation coming purely from it's past investment no new capex then how u assume growth rate ,small decrease in growth rate will lead huge difference
Very good explanation. Can u share live example of essar steel take over by arcelor mittal and nit by ruia.. It would b interesting to learn. I don't know final result who acquired? But fun to learn.
GSFC has market cap of around 2700 crore. It is debt free company so its EV should be less than market cap. But on moneycontrol, EV shown is more than 5000 crore, how ? Pl educate.
This Wrong Then Why Avenue Supermarts D- marts has Highest EV/ EBITDA RATIO..THAT MEANS HE IS SAYING D- MART IS A BAD COMPANY WHILE Future retail is GooD COMPANY DUE TO ITS LOW VALUE OF EV/EBITDA RATIO..ACCORDING TO HIM.
When a company acquires another company, the liquid cash available is used to reduce the acquisition value . Why? This is because when the acquirer will buy the company, say it will pay in cash , and in return get acquiree's all liabilities and assets(including the acquiree's cash). Now if you notice, there is a part in this acquisition where cash is being bought for cash,which doesn't make sense. So while we calculate firm value through EV, we simply subtract the acquiree's cash to net that part in the deal.
When we count market cap = net asset = equity + debt so basically in market cap we have reserves and debt also include...I think you should improve your knowledge
Sir mein dil se abhar hun aapka ,aapko malum nhi aap kitne fanancial problem bachon ki madat karte hain
Ek no Sir
Kya sikhaya hai Aapne💯💯💯💯
Sir just speechless......
You are a outstanding teacher...loved it
Thank you. Your words mean a lot to us.
Pls do tell your friends about our channel too...
BTW - have you made you FREE financial plan already?
If not, pls visit investyadnya.in
Sir, it is very good learning video, now I have clear my EV concept.
Very simple explanation sir.
We want more learning video like this
sir aap bhot easy words me padhate ho, thank you sir
What a amazing lectrue! Zabardast
VERY NICE SIR.......APNE ITNA SARAL BHASHA ME SAMJHA DIYA.
Thank you sir for so clear lecture.🙏
Very good explanation. Sir, pls make a video on Intrinsic value of share.
Very informative 👏. Love ❤️ from Pakistan 🇵🇰. Appreciate.
EV (Enterprise Value) is needed at the time of analysing a share on EV-EBITDA Model.
You are rendering a great service.thanks
Beautiful explanation
Excellent examples shown
Hi, it was awesome lecture.
I had a question, why do we reduce cash while finding EV?
That is because , cash is with the company and you are recieving cash freely . For example I'm buying a company with market cap 100 crores and debt 10 crores. Total EV becomes 110 crores. But if the company is having 50 crores cash then, effectively I'm paying only 60 crores for the company. Im recieving the cash reserves also with the company. Cash is already a part of balance sheet just like the debt. Because debt is a burden I'm adding it to EV and because cash is a relief I'm subtracting it
Please make valuation video and intrinsic value video.
Intrinsic value k chakkar me naa pado. Ye sirf assumption hota h.
eagerly waiting for video on intrinsic value
You are amazing 🙏
Very nicely explained.
Very very helpful video, Thank you for this video 👌❤️.
I will waiting for your valuation series, please bring as soon as possible.
One more request please bring video on infibeam Avenue 🙏
This is known as Knowledge sharing ! 👍👌
Thanks for this video
Very nicely explained ….!!!
hey yadnya team
have made any playlist on this valuation series
Amazingly explained
Nice Helpful video....
Awesome video Sirji!!!!
Hi, please do a video on Why Motherson sumi stock is falling. Really would want to know.
Great.. simply great
I am seeing it in March 2021. 😇
Eagerly awaiting for every video
Nice video. U r doing great work sir
Can you pls explain what is non-controlling interest means ?
Very informative. Nice video.
Sir please make a video on
Aquaculture Sector 😊😊🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏
Hi yadnya team, Please make a video on merger of ifdc and capital first.
Sure. Noted.
Debt is one aspect while considering valuation ,pls tell how u evaluate cash or fcf aspects
In this reliance example - does that mean if I want to buy reliance company then I would need to pay them their EV value rather than market capitalisation value? If yes, then how does it make sense that way ? More the debt company has more the EV value which means we are valuing company more if the company has more debt? CAN you please clarify?
EV=Market cap-(cash+debt)
But the market cap fluctuates a lot and if I say that mkt cap is not a proper way to value a company then EV is also not a proper way to consider value. Mkt Cap is based on share price and share price that depend on demand & supply fluctuates every day
That mean hul valuation coming purely from it's past investment no new capex then how u assume growth rate ,small decrease in growth rate will lead huge difference
Very good explanation. Can u share live example of essar steel take over by arcelor mittal and nit by ruia.. It would b interesting to learn. I don't know final result who acquired? But fun to learn.
Sure. Noted.
GSFC has market cap of around 2700 crore. It is debt free company so its EV should be less than market cap. But on moneycontrol, EV shown is more than 5000 crore, how ? Pl educate.
Brilliant sir
enterprise value or indicative value both are same?
sir cash me assets vi add hoga keya?
This Wrong Then Why Avenue Supermarts D- marts has Highest EV/ EBITDA RATIO..THAT MEANS HE IS SAYING D- MART IS A BAD COMPANY WHILE Future retail is GooD COMPANY DUE TO ITS LOW VALUE OF EV/EBITDA RATIO..ACCORDING TO HIM.
High EV EBITDA means company is overvalued
Thank you sir
Then why it is showing Hind. Unilever EV / EBITDA: 44.53. on screener
Y we less cash & cash equivalents & Y not we take assets into consideration.. plz reply if possible .. thank you...
When a company acquires another company, the liquid cash available is used to reduce the acquisition value . Why?
This is because when the acquirer will buy the company, say it will pay in cash , and in return get acquiree's all liabilities and assets(including the acquiree's cash). Now if you notice, there is a part in this acquisition where cash is being bought for cash,which doesn't make sense. So while we calculate firm value through EV, we simply subtract the acquiree's cash to net that part in the deal.
Sir can you please teach us WACC?
How u evaluate when cash used for investment leads to outflow in case of valuation?
why is cash and cash equivalent reserves subtracted to calculated EV?
Bcz when you buy a company you have to buy mcapvalue + debt aur cash ki bhi karidoge kya nahina na .
Why do we subtract cash in this formula
why cash is deducted while calculating EV?
Wah good
Nice information sir.
Great
excellent bro
Sir all nifty shares ka EV aur ebita aur other factors all factors ka videos shares in single videos me in along with pdf
Sir plz make video on trailing 12 month data
Trailing 12 month data calculation
Why not take other liabilities like current,non current
Hul is a good buy then
Describe ebtida with example
Company acquires will look for more cash but how investor shd evaluate ?
Good information
thank u sir
What is meant by cash equivalent reserves?
Cash equivalents are short-term commitments with temporarily idle cash and easily convertible into a known cash amount.
reliance is now 15 lakhs cr company , I should have bought this company at 7lakhs cr
Minority interest?
Good afternoon sir. Raja AurangZeb from lahore. Why the cash is excluded while calculating enterprise value. Thanks 😇
Pref share
Is there any chance sir internship vagre karne ka apke yaha? Plz reply sir
👍👍👍👍👍
Plz aur humko gyan dijiye sir
This guy is giving Wrong information About EV/EBITDA RATIO THAT LESS RATIO INDICATES BETTER COMPANY..
When we count market cap = net asset = equity + debt so basically in market cap we have reserves and debt also include...I think you should improve your knowledge
Total aset maynas karja total
👍👍👍🙋🙋🙋💎💎💎
Thank u sir