Calculator
Enterprise value
Market capitalisation plus debt less cash, and what that works out at per ounce or tonne of resource.
The formula
Enterprise value = (shares x price) + debt - cash. Enterprise value per resource unit = enterprise value / resource.
What it assumes
- Share price is entered in pence and converted to pounds.
- Shares in issue are fully diluted only if you enter a fully diluted figure.
Where it stops being reliable
- Enterprise value per ounce compares badly across commodities, jurisdictions and stages. A pre-permit ounce in a difficult jurisdiction is not the same asset as a permitted one.
- It takes no account of resource confidence category, grade, metallurgy or how much capital is still needed.
- Options, warrants and convertible instruments can change the share count materially and are not captured unless you include them.
- This is a descriptive ratio. It is not a valuation and it is not a view on whether anything is worth buying.