How to Calculate Enterprise Value

Enterprise value is a valuation assigned to a company to determine how much the whole enterprise is worth, including debt and equity.

We’ll use an example to show how enterprise value works. Then, we’ll detail how you can calculate enterprise value and make use of this statistic as you look to find quality stocks on the stock market.

Calculating Enterprise Value

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MorningStar’s Subscription Service: Worth it!

MorningStar is one of the biggest ratings and analysis sites for mutual funds and stocks.

The company has countless analysts who study businesses and fund companies to find the best places to invest your money for the best risk-adjusted return.

Here’s how MorningStar’s rating system works:

MorningStar for Mutual Funds

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Ford Wins with 999cc Engine

Investors and drivers rejoice – it looks like there might be life in the American automotive industry.

This week, Ford Motor Company won an award for the best engine of 2012. The engine was tiny – 999 cubic centimeters.

But the prize is not so tiny. Ford intends to ship 999cc engines in the popular Ford Focus in the European markets. The engine is expected to come to the United States in 2014 on the new Fiesta line-up. Consumers should rightfully flock to a car that promises up to 35 miles per gallon in combined highway and city driving.

Hybrids vs. Non-hybrids

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China Cuts Rates to Fight European Contagion

The Chinese central bank made its first move in four years to cut its interest rate target by .25%. The move was seen as a defensive maneuver as Europe still struggles with fiscal concerns stemming from the so-called PIGS nations.

It was believed for a long time that China may have been entering an asset bubble similar to the US housing crisis. Housing prices have skyrocketed in metro areas, which made it possible for the economy to grow at a pace well in excess of every nation around the world for more than a decade.

Chinese Rate Cut Good for Commodities

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Is Facebook Making a Cell Phone?

The internet is abuzz with new information that may suggest Facebook is looking to make its own mobile device.

The thought process is simple: Facebook is currently built into a lot of the mobile software on mobile phones. However, now that Google (the creator of the most popular mobile operating system, Android) owns Motorola, it may deflect attention from Facebook to draw members to its own Google+ social network.

Therefore, Facebook needs to make sure that it stays on top of mobile social networking. Making its own phone is one way Facebook can retain users while defending its position as the United States’ preferred social network.

Facebook Phone Rumors

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Ford Emerges from Junk Ratings

From a slowing automotive market to a financial crisis that nearly sent the firm into bankruptcy, Ford has faced plenty of challenges.

Today, however, Ford is back to recovery. Just weeks ago, Fitch upgraded Ford to investment grade citing improvements in automotive manufacturing and sales. The lift helped Ford’s bonds, which rallied tremendously on the news of the upgrade.

Today, however, it was Moody’s that gave Ford another bump to investment grade. The company noted improvements in car sales, and that it thought the company’s improvement would be long-lasting and continued.

Back to Investment Grade

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Goldman Sachs is Evil, So Apple is 1,000% More Evil

The climate for business in the United States is forever changing. During the booming economy of the early 2000s, businesses were man’s best friend.

Today, following bailouts, golden parachutes, and a pervasive belief that the financial companies are ruining the world, one has to take a step back to think about the current business environment.

As a Wall Street protestor might say, “Goldman Sachs is evil!” But if Goldman Sachs is evil, then shouldn’t Apple be 10x more evil? If wealth is greed, and greed is evil, Apple is the greediest of them all!

Goldman’s Evil: $52 billion

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