EV/GCI

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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.

GCI (Gross cash invested) = Gross tangible and intangible assets before depreciation or write-offs + investments in associates + working capital[1]

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

  1. ↑ Workshop V: Relative Valuation

External links

Financial ratios
  • Capitalization rate
  • Debt/equity
  • Dividend cover
  • Dividend payout
  • EV/EBITDA
  • EV/GCI
  • EV/Sales
  • CROCI
  • CAPE
  • LTV
  • Price/book
  • Price/cash flow
  • Price/earnings
  • P/E to growth
  • Price/sales
  • Risk-adjusted return on capital
  • Return on assets
  • Return on net assets
  • Return on capital employed
  • Return on equity
  • Return on tangible equity
  • Return on capital
  • Short interest
  • Sustainable growth rate
  • Sharpe ratio
  • Treynor ratio
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