Think you can spot the biggest firms on Wall Street? The quiz below is designed to challenge your ability to determine which of two companies is worth more.
Traditionally, many will resort to referencing market capitalization, or market cap for short, when it comes to comparing the size of publicly-traded firms. It’s important to note, however, that the following questions actually take into account the firm’s enterprise value rather than its market cap.
Enterprise value (EV) is regarded to be a more accurate representation of a company’s worth because it takes debt into account, whereas market cap does not. More specifically, EV is equal to market cap plus debt, minority interest, and preferred shares, minus total cash and cash equivalents. Good luck!
