Enterprise Value to NOPAT (EV/NOPAT)

Enterprise Value to NOPAT (EV/NOPAT) is a financial ratio that compares a company's enterprise value (market capitalization + debt - cash and cash equivalents) to its net operating profit after tax (NOPAT). NOPAT is a company's operating profit after taxes, which is calculated by subtracting operating expenses and taxes from gross income.

The EV/NOPAT ratio is used to assess the current market value of a company relative to its NOPAT. This metric is an important assessment tool for investors, as it provides a measure of how efficiently a company is generating profits relative to its overall value. A low EV/NOPAT ratio is considered attractive, as it indicates that a company's operations are generating strong earnings, and its market value is reasonable or undervalued. On the other hand, a high EV/NOPAT ratio suggests that a company is expensive relative to its earnings, and investors may want to consider other investment options.

Additional Details

Metric Name	Type	Default Period Type
ev_to_nopat	fin_metric	FY

Formatting Details

Data Format	Display Format	Unit
float	number	multiple