Series 79: Calculating Important Financial Information

Calculating Important Financial Information

Calculation of equity and enterprise value. From the proxy statement, we can find Canin’s accepted offer price of $36.00 per share and Northwest Design’s fully diluted shares outstanding of 34.75 million. To calculate the implied equity value, multiply the price per share ($36.00) by the number of shares outstanding (34.75 million), totaling $1,251 million. Net debt can be calculated from information found in the Form 8-K ($35 million in interest-bearing debt minus $6 million in cash and cash equivalents equals $29 million). Adding net debt to implied equity value produces an implied enterprise value of $1,280 million ($1,251 million + 29 million = $1,280 mil