Alongside market capitalization comparisons, it’s worth checking what EV, or the component added to enterprise value, i.e., net debt, is.
In Ecoupin’s case:
- interest-bearing liabilities 5.3 MEUR
- liquid assets 0.3 MEUR
→ net debt approx. 5.0 MEUR
Sometimes that net debt can be quite significant, or non-existent, or very different from other companies in the industry.
During the COVID era, Outokumpu had net debt over 2 EUR/share and the share price was just over 2 EUR/share, meaning the enterprise value was double the market capitalization. Subsequently, the entire net debt disappeared completely, and the market capitalization matched the enterprise value.
In Ecoupin’s case, the enterprise value is about 20% on top of the market capitalization, i.e., about 0.55 EUR/share. So, probably not bad if the company’s financing is sound, or if cash flow is generated from operations.
