Enterprise value and G5: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Layout.)
 
imported>Doug Williamson
(Link with Plaza Accord page.)
 
Line 1: Line 1:
1. ''Traditional corporate finance.''
1.


(EV).
Loosely, the G5 is a group of 5 major industrialised countries comprising France, Germany, Japan, the United Kingdom and the United States.


The total value of a commercial business, whether funded by equity alone or by a combination of equity and debt.


Also known as the 'entity value'.
2.


More strictly, a meeting of the heads of government or the heads of central banks from those countries.


In traditional corporate finance, where the business is funded by both debt and equity the EV is given by:


EV = market value of debt + market value of equity
''Also known as the Group of Five or 'G-5'.''




2. ''Sustainability - integrated reporting.''
3.


A fuller and longer-term concept of value, taking account of the full range of factors that materially affect the ability of an organisation to create value over time.
The G5 is also a group of 5 developing countries comprising Brazil, China, India, Mexico and South Africa.
 
This includes understanding of the organisation's natural, intellectual, human, social and relationship capital, and their independencies.
 
 
In theory - and assuming fully efficient and rational markets - this broader conception of value would already be reflected in the current market values of the organisation's debt and equity.
 
However, advocates of more fully integrated reporting believe that markets and market information are not yet fully efficient in this sense.




== See also ==
== See also ==
* [[Corporate finance]]
* [[BRICS]]
* [[Efficient market]]
* [[Central bank]]
* [[Enterprise]]
* [[G20]]
* [[Entity]]
* [[G7]]
* [[Integrated reporting]]
* [[G77]]
* [[Market value]]
* [[G8]]
* [[Sustainability]]
* [[Plaza Accord]]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]

Revision as of 16:35, 16 February 2019

1.

Loosely, the G5 is a group of 5 major industrialised countries comprising France, Germany, Japan, the United Kingdom and the United States.


2.

More strictly, a meeting of the heads of government or the heads of central banks from those countries.


Also known as the Group of Five or 'G-5'.


3.

The G5 is also a group of 5 developing countries comprising Brazil, China, India, Mexico and South Africa.


See also