Equity bridge
The move from the value of the whole business to the value of the shareholders' share: debt and obligations to others are deducted, cash and non-operating assets added.
How to read the number
Multiples give the value of the business as a whole, while the shareholder cares about what remains once lenders have been settled with.
When the metric lies
The bridge picks up items absent from the definition of net debt: non-controlling interests, pension obligations, lease liabilities.
Also known as: ev to equity bridge