Valuation – Enterprise Value vs. Equity Value
Articles
What Is Enterprise Value? A Plain-English Guide
Enterprise Value explained: what it measures, how it differs from market cap and equity value, and why finance interviewers care so much about the difference.
How to Calculate Enterprise Value in an Interview
The Enterprise Value formula, step by step, plus the follow-up questions interviewers actually ask — minority interest, preferred stock, and the EV-to-equity bridge.
Enterprise Value vs. Equity Value: What's the Difference and Why It Matters
Enterprise Value and Equity Value measure two different things. Learn the difference, the bridge formula between them, and why interviewers test this constantly.
How to Bridge Enterprise Value to Equity Value: A Step-by-Step Interview Example
A step-by-step walkthrough of the EV-to-equity bridge using a simple $100M EBITDA example — exactly how interviewers expect analyst and associate candidates to answer.
What Is Diluted Share Count? Basic vs. Diluted Shares Explained
Diluted share count explained: what diluted shares outstanding include, how the treasury stock method works, and why analysts value on the diluted count.
How to Calculate Diluted Share Count in an Interview (Treasury Stock Method)
A step-by-step walkthrough of calculating diluted share count using the treasury stock method for options and the if-converted method for convertibles — the way interviewers expect it.
Enterprise Value vs Equity Value: What's the Difference?
Enterprise Value and Equity Value are easy to confuse in finance interviews. Learn what each represents and every adjustment in the full bridge between them.
How to Calculate Equity Value from Enterprise Value (Interview Guide)
A step-by-step interview walkthrough for bridging Enterprise Value to Equity Value per share, covering net debt, minority interest, and more.
Diluted EPS Explained: The Treasury Stock Method and If-Converted Method
Why basic EPS isn't the number that matters, and how the treasury stock method and if-converted method turn options, RSUs, and convertibles into fully diluted EPS.
How to Calculate Fully Diluted Shares Outstanding (Interview Walkthrough)
A step-by-step framework for answering 'walk me through fully diluted shares outstanding' — covering the treasury stock method, RSUs, and the if-converted test for convertibles.
What Is a Rights Issue? TERP, Pre-Emption Rights and Dilution Explained
What is a rights issue and what does TERP mean for the share price? Learn how pre-emption rights work, why dilution is not automatic, and how to explain it.
How to Calculate TERP and the Value of a Right: Rights Issue Interview Walkthrough
How do you calculate TERP, the value of a right and EPS dilution in a rights issue? A step-by-step interview walkthrough with worked numbers and common traps.
Cases
What Is Enterprise Value?
Why not just market cap: debt, cash, minorities — the intuition
EV-to-Equity Bridge (Intro)
As a junior analyst, you're given a private company's EBITDA and asked to calculate its Enterprise Value using a market trading multiple, then bridge that Enterprise Value to Equity Value by accounting for the company's debt and cash.
Diluted Share Count
Walk me through how you would calculate a company's fully diluted share count, including the treasury stock method for in-the-money stock options and the if-converted method for convertible securities.
Full EV-to-Equity Bridge
As a valuation analyst, you are tasked with bridging Enterprise Value to Equity Value for a mid-cap industrial company, applying the full adjustment stack: net debt, minority interest, investments in associates, pension deficit, and capitalized lease liabilities.
Dilution Deep Dive
As a valuation associate preparing a fully diluted share count for a merger model, you are tasked with applying the treasury stock method to a company's in-the-money stock options and unvested RSUs in full detail, applying the if-converted method to its outstanding convertible notes, and then quantifying how each dilutive security changes diluted EPS.
Rights Issue: TERP, Dilution and Why Not a Placement
As an equity capital markets analyst, you are tasked with evaluating a listed industrial group's proposed rights issue: calculate the theoretical ex-rights price and the value of one right, quantify the earnings dilution for existing shareholders, and explain why the company chose a rights issue rather than a placement.