saw this formula on tiktokBrehs when researching Stock what are the main factors you look for before deciding/declining to invest in that stock?
Enterprise Value = Market capitalization + Debt - Cash & investments;
take the ratio of Enterprise Value/Revenue
high ratio = overvalued
low ratio = undervalued; potential to grow
all the numbers can be found on finviz
the actual Enterprise Value - Revenue can be found on Yahoo Finance (for brehs who don't want to do math)
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