Coelce, now operating under the name Enel Distribução Ceará, is an electric distribution utility controlled by the Italian group Enel. The company operates in all 184 municipalities in the state of Ceará and is the only energy distributor in the region. Its business model is regulated by the National Electric Energy Agency (ANEEL) and consists of distributing electricity from transmission grid connection points to end consumers, including residential, commercial, industrial and rural customers. The company's main activities include operating and maintaining network infrastructure, measuring energy consumption, and providing business services, such as billing and customer service. Enel Distribuição Ceará's revenue comes from distribution system usage fees (TUSD), which remunerate the electricity transportation service.
Market capitalization, or "market cap", is the aggregate market value of a company represented in a dollar amount. Since it represents the “market” value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares.
Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt and any cash or cash equivalents on the company's balance sheet.
The enterprise value-to-revenue multiple (EV/R) is a measure of the value of a stock that compares a company's enterprise value to its revenue. EV/R is one of several fundamental indicators that investors use to determine whether a stock is priced fairly. The EV/R multiple is also often used to determine a company's valuation in the case of a potential acquisition. It's also called the enterprise value-to-sales multiple.
The enterprise value to earnings before interest, taxes, depreciation, and amortization ratio (EV/EBITDA) compares the value of a company—debt included—to the company's cash earnings less non-cash expenses. It's best to use the EV/EBITDA metric when comparing companies within the same industry or sector. Typically, when evaluating a company, an EV/EBITDA value below 10 is seen as healthy.
It follows the same logic as the EV/EBITDA indicator, but instead of EBITDA, EBIT is used, which considers non-cash D&A expenses in the company's operating result.
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