Some fundamental drivers such as market cap or NetSuite enterprice value can be analyzed from historical prospective to project value of the company into the future. Some investors analyze NetSuite valuation indicators such as Enterprise Value of 6.7 B or Invested Capital of 139.3 M to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of NetSuite future value. Financial Statement Analysis is much more than just reviewing and breaking down NetSuite prevalent accounting reports in order to predict its past. Macroaxis encourages investors to analyze financial statement over time for various trends across multiple indicators and accounts to determine whether NetSuite is a good buy for the upcoming year. See also Stocks Correlation.
Earnings before TaxEarnings Before Tax is calculated by adding [TaxExp] back to [NetInc].
Enterprise ValueEnterprise Value (or EV) is usually referred to as NetSuite theoretical takeover price. In the event of an acquisition, an acquirer would have to take on NetSuite debt, but would also pocket its cash. Enterprise Value is more accurate representation of NetSuite value than its market capitalization because it takes into account all of NetSuite existing debt. Enterprise value is a measure of the value of a business as a whole; calculated as [MarketCap] plus [DebtUSD] minus [CashnEqUSD].
Free Cash FlowFree Cash Flow is a measure of financial performance calculated as Net Cash Flow from Operations minus [CapEx].
Invested CapitalInvested capital represents the total cash investment that shareholders and debt holders have contributed to NetSuite. There are two different methods for calculating NetSuite invested capital: operating approach and financing approach. Understanding ##company1# invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed. Invested capital is an input into the calculation of Return on Invested Capital; and is calculated as: [Debt] plus [Assets] minus [Intangibles] minus [CashnEq] minus [LiabilitiesC]. Please note this calculation method is subject to change.
Market CapitalizationMarket capitalization (or market cap) is the total value of the shares outstanding of NetSuite. It is equal to NetSuite current share price times the number of NetSuite outstanding shares. Represents the product of [SharesBas]; [Price] and [ShareFactor].