Sunday, February 15, 2009

Enterprise Value

Apple Enterprise Value as of 1980:

Outstanding shares x Cost of individual shares + Short term debt

$54,215,332 x $22 + 9,353,870

Total Enterprise Value: $1,202,091,174

Microsoft Enterprise Value as of 1986:

Outstanding shares x Cost of individual shares + Short term debt

2,500,000 x $21

Total Enterprise Value: 52,500,000

The enterprise value of Apple was 4.37% higher then Microsoft during the initial public offering.

1 comment:

Professor said...

You might want to check your math again on this one. Share numbers do not take a "$" sign as it is not a value figure, it is the exact number of shares of the company that are outstanding.