Enterprise Value (like MVIC) is one measure of total firm value. It is the sum of the market value of all claims against a company’s assets, including claims by equity holders and debt holders. It is a value that is “capital structure independent,” which just means that a change in the company’s capital structure would […]
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The Invested Capital (IC) of a company is one measure of total firm value (like Enterprise Value). It represents the value of the core operations of the business. Alternatively, IC can also be defined as the combination of shareholder’s equity and interest-bearing debt. Whereas invested capital typically refers to the book value of invested capital, […]
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