Topic: FSG discussion thread

[crewlove]

It does include debt as it's based on Enterprise Value rather than on Equity Value. Which sounds reasonable albeit valuing football clubs is a different matter to a normal entity and I wouldn't put much into it.

Team values are enterprise values (equity plus net debt) and include the economics of the team’s stadium (but exclude the value of the real estate itself), based on comparable transactions.

[Peabee]

Yeah, EV is not the same as Market Cap. It tells you how much you would need to purchase the company, so debt increases EV. If a company has a lot of cash, it lowers the EV. You can even have a negative EV if you have more cash than debt + Market Cap, as it shows the company is not using its assets efficiently.