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FintelVentures / fintel-issues

Public repository to track bugs, issues, and feature requests for Fintel
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Calculation of Enterprise Value is incorrect #4

Closed datawisely closed 7 years ago

datawisely commented 7 years ago

https://fintel.io/screen/negative-enterprise-value-companies

The calculation of the Enterprise Value is incorrect. It does not add Debt. Here ist the correct formula:

https://en.wikipedia.org/wiki/Enterprise_value

As a result the EV of NYSE:UIS is wrongly calculated with $19.5M - the correct calculation is here: https://www.gurufocus.com/term/ev/UIS/Enterprise+Value/Unisys+Corp and is $487M.

risenhoover commented 7 years ago

My initial investigation shows the calculation is coded correctly but it's pulling data from the most recent annual report, not the most recent quarterly report. I will update the code to use the most recent quarterly report and then continue auditing. Thanks for reporting this.

risenhoover commented 7 years ago

I have updated code to use MRQ data for calculating valuation metrics such as EV, NCAV, and so on. EV for UIS is now $477M, which is more in line with other sources (see https://fintel.io/sm/us/uis ). However, both Yahoo and YCharts are reporting EV = $48xM so there is still a slight discrepancy that I will continue investigating.