WLM Participacoes e Comércio de Máquinas e Veiculos S.A. is a Brazilian company with diversified operations in three main segments: Automotive, Agriculture and Rental. The company's main business is the automotive segment, where it acts as a dealer for the Scania brand, selling heavy and extra heavy trucks, bus chassis, spare parts and providing maintenance services. The company has a network of dealers and stores in several states, such as Rio de Janeiro, São Paulo, Minas Gerais, Pará, Amapá, Amazonas and Roraima. The farm segment, managed by subsidiaries, produces and sells beef cattle and grows grains, including soybeans and coffee. Additionally, WLM operates a rental segment focused on the operational lease of Scania vehicles, generators and other equipment.
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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