IB Technicals 3: Enterprise Value and Valuation

Enterprise value is what you write the check for when you buy the whole business. Equity value is the slice that belongs to shareholders. Every valuation question runs through the bridge between the two. This session builds that vocabulary first: why you add debt and subtract cash, what diluted shares are, and which price tag pairs with which earnings line. Then the three ways bankers get to a number. Trading comps, which price a business the way a house gets priced, against what similar ones are selling for. Precedent transactions, which do the same with deals that actually closed, control premium included. And the DCF, which values the cash flows directly and gets its own night. What we'll cover: - What enterprise value is, why you add debt and subtract cash, and the Morgan Stanley superday question that tests whether you understand it - Equity value, diluted shares, and the treasury stock method - What a multiple is, and the pairing rule: above the interest line it is enterprise value, below it equity value - The three valuation methods and how they rank - How to pick a comp set, and the apple farm in the orange farm's peer group - Precedent transactions, and what a football field is Want to be done guessing at valuation questions? I run a 90-minute mock interview, a full simulation and then rapid-fire technicals on whatever broke. Book a free 15-minute intro to see if it is a good fit. Part 3 of IB Technicals, a six part run on Tuesdays and Thursdays. Each night covers how the concept works and, more importantly, how to actually answer the questions on it, with the stories and details behind them. Each one stands alone, so jump in anywhere. I'm the founder of OFFERGOBLIN and ex-Centerview tech.