Final answer:
To analyze the EQ and EP V of private companies, calculate the equity and enterprise value through specific steps and formula discussed in the detailed answer.
Step-by-step explanation:
When analyzing the equity (EQ) and enterprise value (EP V) of private companies, there are a few steps to follow:
- Calculate Equity (EQ): First, you need to determine the company's total assets and total liabilities from their financial statements. Subtract the total liabilities from the total assets to get the equity value.
- Calculate Enterprise Value (EP V): Start by finding the company's market capitalization, which is the number of outstanding shares multiplied by the share price. Then, add the total debt and any minority interests to the market capitalization. Subtract any cash and cash equivalents from this sum to get the enterprise value.
By following these steps, you can analyze the EQ and EP V of private companies.