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Formula sheet/NISM Series XV: Research Analyst/Terminology in Equity and Debt Markets
[ TERMINOLOGY IN EQUITY AND DEBT MARKETS ]

Enterprise Value (EV) — Standalone & Consolidated

Standalone:EV=Market Value of Equity+Preferred Capital+Total Debt−(Cash+Non-Operating Investments)Standalone: EV = \text{Market Value of Equity} + \text{Preferred Capital} + \text{Total Debt} - (Cash + \text{Non-Operating Investments})
Consolidated:EV=MV of Parent Equity+Minority Interest+Preferred CapitalParent+Sub+DebtParent+Sub−(Cash&Non-Operating AssetsParent+Sub)Consolidated: EV = \text{MV of Parent Equity} + \text{Minority Interest} + \text{Preferred Capital}_{\text{Parent+Sub}} + Debt_{\text{Parent+Sub}} - (Cash \& \text{Non-Operating Assets}_{\text{Parent+Sub}})
Variables

Total Debt: Long-term debt + Short-term debt + Current maturities + Lease obligations. Cash: Liquid cash & equivalents.

Exam note

EV measures total business enterprise value gainfully employed in operations, neutral to capital structure choices.

Worked examples
Book Value Per Share (BVPS) Calculation

Apex Auto Ltd has an issued equity capital of Rs 50 Crore (Face Value Rs 10 per share), General Reserves of Rs 320 Crore, Retained Earnings of Rs 180 Crore, and Revaluation Reserves of Rs 50 Crore. If the company has accumulated deferred losses of Rs 20 Crore, compute the BVPS.

Standalone vs. Consolidated Enterprise Value (EV)

A parent entity has 2 Crore equity shares trading at Rs 450 per share. It has preferred capital of Rs 50 Cr, standalone debt of Rs 200 Cr, and standalone cash of Rs 60 Cr. Its subsidiary has minority interest of Rs 80 Cr, debt of Rs 120 Cr, and cash/liquid investments of Rs 40 Cr. Compute Standalone and Consolidated EV.

EPS, DPS, and Dividend Payout Ratio

Zenith Pharma reports Net Profit after Tax of Rs 180 Crore for FY2026. The company has 12 Crore equity shares outstanding with a Face Value of Rs 2 each. The Board declares a dividend of 250%. Calculate Basic EPS, DPS, and the Dividend Payout Ratio.

Commodity Futures Pricing & Cost of Carry

Spot Gold trades on MCX at Rs 72,000 per 10 grams. The risk-free financing rate is 7.5% p.a., storage and insurance costs are 0.8% p.a., and convenience yield is zero. Calculate the fair value of a 2-month futures contract.