Late-night addendum to the Pandora analysis: “Enterprise value”
Now that I think about it, a better way to do the math in the “RAIN Analysis” in our June 3rd issue might be, rather than looking at market capitalizations, to look at the “enterprise values” of radio station groups — how much the stations themselves are worth, as represented by the sum of what the shareholders own (i.e., the market capitalization) and what the banks own (i.e., the company’s debt).
Example: At the moment, the stock market thinks that Emmis’s assets…
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