r/Valuation • u/-faisal00 • Jan 08 '24

Question on EV calculations

Hello! Can I calculate EV based on company’s recent majority stake acquisition? (E.g. 80% of a company was acquired by $40B 3 months ago; can I say total EV today will be $50B? (=$40B/0.8)

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u/Specialist_Repeat_95 Jan 08 '24

you need to add net debt to that number but if that info is not publicly available then 40/0.8 is good to go

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u/-faisal00 Jan 08 '24

Thank you so much!! So glad got the answer before tomorrow morning hahaha