Issue Price
Definition of Issue Price
Related Terms
Blue Chip Stocks
Modified Duration
Autoregressive Model
The model assumes that past values can have an impact on the current value but the number of past values it takes into account can vary.
For example, an AR(1) model will use one preceding value, an AR(2) model will use two preceding values, and so on.
Enterprise Value
Conversely, Enterprise Value is also used to figure out the amount of money a company can get on selling their business. To calculate the EV of a company, the total market capitalization is combined with the net debt or cash subtracted from debt. The formula to calculate Enterprise Value is:
EV = Market Capitalization + Net Debt
Or
EV = Market Capitalization + Debt - Cash

