Monday, December 19, 2011

Market Value or Enterprise Value

What to look at? Market value or enterprise value (market value plus net debt)?
For example, SUZB is currently valued for BRL 2.7 billions. However, if you buy the whole company you'll still have to pay more BRL 5.3 billions to pay all debts.
So, how much Suzano worth today?

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1 comments:

cessna said...

When I valuate an enterprise I consider the interests paid. With a recurrent, conservative FCF on hand I calculate, with a modest growth rate, the intrinsic value. That value is then compared with the MARKET VALUE.

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