The difference between Enterprise Value and Equity Value is shown by the below formula:

The Enterprise Value to Equity Value Bridge (EV-EQV Bridge), also known as the “net debt bridge”, enables the user to make adjustments to the default Net Debt position.

The default Net Debt position is calculated as Debt less Cash for the last full actual year as specified in the Financial Projections. The user also has the option to overwrite these defaults. The EV-EQV screen also shows other commonly used adjustments to the net debt, such as Pensions, Non-controlling interests or minimum cash (the amount of the cash position that is required for daily operations and should thus be excluded from the net debt calculation).

In addition, there may be other non-operating assets or liabilities that a user may want to include in this calculation. This can be done by selecting “add custom positions'' and creating any custom position required.

NB: Note that assets should be included as a negative amount and liabilities with a positive amount.

Once completed, a green feedback prompt will confirm that it has been included in the valuation calculation.