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Help with calculating X when Y = 0

  1. #1
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    Help with calculating X when Y = 0

    Hi,

    I need help with creating a simple formula to calculate what X (enterprise value) needs to be in order for Y (the price in this case) to be 0. There are some constants involved such as number of shares, strike price, debt, etc. Attached is an example highlighting the problem.

    Thanks in advance,
    VidOs
    Attached Files Attached Files

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    Re: Help with calculating X when Y = 0

    Your Price per share isn't zero -> -0,00000001692

    So you could use this formula.
    Formula: copy to clipboard
    Please Login or Register  to view this content.

    Or this one and formatting. 0.0000000;-0.0;"X"
    Formula: copy to clipboard
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    Attached Files Attached Files
    Last edited by DJunqueira; 01-30-2024 at 12:10 PM.

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    Re: Help with calculating X when Y = 0

    Hi,

    Thanks!

    I apologize if my previous explanation was unclear and poorly described my issue. I acknowledge that the share price is not zero; I used a constant in cell B9 as an example for the variable "Enterprise Value". What I am actually seeking is a formula that calculates the Enterprise value (in B8/B9) when the Price per share is 0.

    Best regards,

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    Re: Help with calculating X when Y = 0

    How much of this is programming and how much is algebra?

    If I'm guessing right, Y is the "price per share" in B13, and X is the "enterprise value" in B9. Did I guess correctly.

    If I guessed correctly, Y=(X+SUM(stuff))/numberofshares-strikeprice -> B13=(B9+SUM(B10:B12))/B5-B6. Most of the work in solving that for X is algebra. Solve that expression for X, then put that formula into the spreadsheet.

    If that is correct, let us know if you have trouble with the algebra. If that is not correct, help us understand the relationship between X and Y, and we should be better able to help.
    Quote Originally Posted by shg
    Mathematics is the native language of the natural world. Just trying to become literate.

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