EV/GCI

EV/GCI (enterprise value/gross cash invested) is an advanced valuation multiple used to compare a company's book value of its assets to their current market value. The ratio is similar to P/B ratio, but EV/GCI is calculated on an EV-basis, taking into account all the company's security-holders.^[1]

Formula

GCI (Gross cash invested) = Gross tangible and intangible assets before depreciation or write-offs + investments in associates + working capital^[2]

When EV/GCI is higher than 1, then the market is willing to pay a valuation premium. A discount takes place in the opposite case.

References

↑ "Introducing GS Sustain" (PDF). Retrieved 29 October 2015.
↑ Workshop V: Relative Valuation

External links

Financial ratios

Cyclically adjusted price-to-earnings (CAPE)
Capitalization rate (Cap Rate)
Cash return on cash invested (CROCI)
Debt-to-equity (D/E)
Dividend cover
Dividend payout
Enterprise value/EBITDA (EV/EBITDA)
Enterprise value/gross cash invested (EV/GCI)
Enterprise value/sales (EV/Sales)
Loan-to-value (LTV)
Omega
Price-to-book (P/B)
Price/cash flow (P/CF)
Price-earnings (P/E)
Price-earnings to growth (PEG)
Price-sales (P/S)
Return on assets (ROA)
Return on net assets (RONA)
Return on capital (ROC)
Return on capital employed (ROCE)
Return on equity (ROE)
Return on tangible equity (ROTE)
Risk-adjusted return on capital (RAROC)
Risk return (RRR)
Sharpe
Short interest (SIR)
Sortino
Sustainable growth (SGR)
Treynor

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