Enterprise Value

The capitalization of Rosneft is 4.08 trillion. rub.

The total value of debt obligations as of December 31, 2021 is 4.7 trillion. rub. , and cash and equivalents are equal to 0.65 trillion. rub.

This means EV = 4.08 + 4.7 - 0.65 = 8.13 trillion. rub.

More detailed

The indicator is calculated according to the formula:

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Enterprise Value = Market capitalization + Long-term & Short-term debt - Cash and cash equivalents

EV is required for:
1. valuation of the company when buying/selling or taking over
2. calculation of the amount of collateral for insurance/crediting;
3. business restructuring/liquidation operations;
4. understanding the company's place among competitors from the same industry.

Enterprise value is an important indicator for company owners, but for an investor, comparison with other indicators is more important, as this gives more information about the current state of the business and its prospects. There are such multiples as EV/EBITDA, EV/Sales, EV/EBIT, etc.