Market Value of Total Capital and Enterprise Value: Cash Creates Potential Differences in Total Capital Multiples

What is the difference between a company’s total capital value and enterprise value?  The difference between these two concepts is the treatment of cash.  In the following post, Z. Christopher Mercer, founder and CEO of Mercer Capital, examines the effect of cash on the relative valuation multiples of three public companies.

To read the full article in Mercer Capital’s Financial Reporting Blog, click: Market Value of Total Capital and Enterprise Value: Cash Creates Potential Differences in Total Capital Multiples.

This article is republished from Mercer Capital’s Financial Reporting Blog.  It is reprinted with permission.  To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.