Module II· EV-Equity BridgeBasic
Question
What is the standard bridge formula from EV to Equity Value?
Answer
Standard formula
```
EqV = EV
− Net Debt
− Minorities
− Pension Underfunding
− Lease Liabilities (post-IFRS 16)
− Other Debt-like Items
+ Associates (Equity Method)
+ Excess Cash
```
Variants
Some use total cash instead of excess cash. Others exclude operating cash.
Important
Consistency between the comp set and the target − treat them all the same.
Pitch tip
The bridge slide shows each component individually in $m − senior MDs check every line.