TOTVS S.A. is the largest technology company in Brazil focused on developing software and providing services for digitizing companies. The company organizes its portfolio in a solution ecosystem divided into three business dimensions: Management, Business Performance and Techfin. Management, its core business, offers specialized business management systems (ERP) for various economic sectors, such as Manufacturing, Retail, Health, and Agribusiness. The Business Performance front provides tools that go beyond ERP, such as marketing automation and data analysis, to help clients improve their performance. Techfin's dimension integrates financial services, such as credit and payment solutions, directly into the company's management platforms. With over 70,000 clients, TOTVS is the leading ERP market in Brazil and has a presence in 12 countries.
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.
...and much more!