Separate operating value from common equity

1. Choose a consistent operating basis

Explicitly choose a nonfinancial operating business and a trailing or forward basis. Enter positive annual consolidated EBITDA and three independently selected multiples. EBITDA multiplied by each multiple gives operating enterprise value. No peer group, industry average, issuer statement or current multiple is supplied.

Use the same currency and accounting scope throughout. This narrow model rejects missing, zero or negative EBITDA and does not value banks or financial businesses. The declared basis is your assumption, rather than verified company classification or a reporting date.

2. Enter bridge items once

Operating EV excludes cash and nonoperating assets. To reach common equity, subtract debt, preferred claims, noncontrolling claims and additional nonoperating claims; add cash and nonoperating assets excluding cash. Additional claims must exclude operating payables already represented in EV and anything already included in another bridge field.

The prefilled amounts are editable model assumptions; mark a value unknown when you cannot establish it for your scenario. Select known only when you supply its amount, including an explicit 0 if your assumption is none. Net debt is debt minus cash and can be negative. All six amounts must be known before common equity is complete. This bridge is for operating EV; it is not added to DDM or FCFE again.

3. Distinguish an available value from a diagnostic

Positive complete common equity needs a supplied positive diluted common-share count before a model value per share is available. An unknown count leaves that value unavailable. Zero or negative equity remains visible as a diagnostic; it creates no positive share value, MOS threshold or price ratios. The supplied dilution is an approximation, without separate option valuation.