Wall Street may not at all times appreciate the romance of fashion — but when investors are good at anything, it’s poring over the numbers as they work out just where to place their money.
To gauge the total financial weight of a business, they often have a look at enterprise value — the mixture of all of the debt an organization has raised and the present value of all of its stock, minus any money readily available.
That boils an organization’s value all the way down to the entire money it’s managed to draw from debt and equity investors, extending that value to any stock that doesn’t float on the open market.
It’s how much you’d need to pay to purchase an...
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