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welcome to another tutorial video this time around were going to be discussing enterprise value and why you add and subtract certain items when calculating it now like a lot of other tutorials in this channel this one is actually an update of an earlier tutorial that we published i felt the previous version didnt do a great job of laying out the rules and explanations for different line items also some accounting changes since that time mean that some updates are required to those rules the most common question we get here goes something like this i understand the mechanics of the enterprise value calculation but not the why behind it can you explain why you add and subtract certain items to calculate it as usual im going to give you a short answer here in a few minutes and then were going to go into a more detailed and lengthier explanation we will be referring to the filings of this u.s based company steel dynamics and then this european company vivendi so steel dynamics follows
