EV/GCI
From Infogalactic: the planetary knowledge core
EV/GCI (enterprise value/gross cash invested) is an advanced valuation multiple used to compare a company's book value of its assets to their current market value. The ratio is similar to P/B ratio, but EV/GCI is calculated on an EV-basis, taking into account all the company's security-holders.[1]
Formula
GCI (Gross cash invested) = Gross tangible and intangible assets before depreciation or write-offs + investments in associates + working capital[2]
When EV/GCI is higher than 1, then the market is willing to pay a valuation premium. A discount takes place in the opposite case.
References
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- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Workshop V: Relative Valuation
