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calculation of net cash

QuestionsCategory: Valuation Quadrantcalculation of net cash
Hendra Wijaya asked 4 years ago

Hi Team,

In many of the examples to calculate the intrinsic value of a company, the Net Cash position was used to be added/subtracted from the PE valuation method.
Is the Net Cash calculated based on taking the total cash position minus total liabilities?
Thanks for your kind clarification.

1 Answers
Victor Chng Staff answered 4 years ago

Hi Hendra,
The net cash position is taking the total cash minus the total debt

Joseph Foo replied 3 years ago

Hi Victor, when I check the excel financial analysis formula, it is using debt minus cash which gives a negative result. Is it an error?