Quick google told me :
"You're looking to calculate the VALUE of a company through EV. In broad terms, value of a company is assumed to be the present vale of its future cash flows. The excess cash on the books (not all cash is excess cash) is assumed to be a non-operating asset. It does not aid in generation of future cash flows and therefore does not contribute to value. That is why it is subtracted."
So in other words, the cash that a company has sitting in a bank account isn't being used to build the company/ stimulate future growth.. Therefore it adds no real value to the operation of the company ?
Quick google told me : "You're looking to calculate the VALUE of...
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Last
19.0¢ |
Change
-0.010(5.00%) |
Mkt cap ! $33.88M | |||
| Open | High | Low | Value | Volume |
| 19.5¢ | 19.5¢ | 19.0¢ | $5.715K | 29.91K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1977 | 19.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 20.0¢ | 38459 | 1 |
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| Last trade - 13.07pm 27/06/2024 (20 minute delay) ? |
| SRT (ASX) Chart |