WEG is a global capital goods company focused on manufacturing electronic equipment and industry solutions. Its operations are divided into four main business areas: Industrial Electrical Equipment (EEI), Power Generation, Transmission and Distribution (GTD), Commercial Engines and Appliance (MCA), and Paints and Varnishes (T&V). The EEI segment provides electric motors and automation products, while the GTD area offers solutions for energy infrastructure, such as transformers, substations, and generation projects. The MCA and T&V divisions complement the portfolio with engines for commercial and appliance use, and industrial paints and varnishes, respectively. The company has a global presence with production units in Brazil and abroad, serving markets in the Americas, Europe, Asia-Pacific and Africa.
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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