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Enterprise value
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===Data availability=== Unlike market capitalization, where both the market price and the outstanding number of shares in issue are readily available and easy to find, it is virtually impossible to calculate an EV without making a number of adjustments to published data, including often subjective estimations of value: * The vast majority of corporate debt is not publicly traded. Most corporate debt is in the form of bank financing, finance leases and other forms of debt for which there is no market price. * Associates and minority interests are stated at historical book values in the accounts, which may be very different from their market values. * Unfunded pension liabilities rely on a variety of actuarial assumptions and represent an estimate of the outstanding liability, not a true βmarketβ value. * Public data for certain key inputs of EV, such as cash balances, debt levels and provisions are only published infrequently (often only once a year in the annual report & accounts of the company). * Published accounts are only disclosed weeks or months after the year-end date, meaning that the information disclosed is already out of date. In practice, EV calculations rely on reasonable estimates of the market value of these components. For example, in many professional valuations: * Unfunded pension liabilities are valued at face value as set out in notes to the latest available accounts. * Debt that is not publicly traded is usually taken at face value, unless the company is highly geared (in which case a more sophisticated analysis is required). * Associates & minority interests are usually valued either at book value or as a multiple of their earnings.
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