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Bank of China Enterprise value

What is the Enterprise value of Bank of China?

The Enterprise value of Bank of China Limited is $112.78B

What is the definition of Enterprise value?



Enterprise value is a measure of a company’s total market value. It is calculated as market capitalization with debt, minority interest, and preferred shares minus total cash and cash equivalents.

ttm (trailing twelve months)

It is a sum of claims by all claimants including creditors (secured and unsecured) and shareholders (preferred and common). Enterprise value is one of the fundamental metrics used in business valuation, financial modeling, accounting, portfolio analysis, and risk analysis. Enterprise value is more comprehensive than market capitalization, which only reflects common equity and is considered more representative of a company’s value. Enterprise value reflects the opportunistic nature of business and may change substantially over time because of both external and internal conditions.

Enterprise value can be negative if the company holds abnormally high amounts of cash that is not reflected in the market value of the stock and total capitalization. Cash is subtracted in the calculation because it reduces the net cost to a potential purchaser. The effect applies whether the cash is used to issue dividends or to pay down debt. Value of minority interest is added because it reflects the claim on assets consolidated into the firm in question. Value of associate companies is subtracted because it reflects the claim on assets consolidated into other firms. EV should also include such special components as unfunded pension liabilities, employee stock options, environmental provisions, abandonment provisions, and so on, since they also reflect claims on the company.

Enterprise value of companies in the Finance sector on HKSE compared to Bank of China

What does Bank of China do?

Bank of China Limited, together with its subsidiaries, provides banking and related financial services. It operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other Operations. The Corporate Banking segment offers current accounts, deposits, overdrafts, loans, trade-related products and other credit facilities, foreign exchange, derivatives, and wealth management products to corporate customers, government authorities, and financial institutions. The Personal Banking segment provides savings deposits, personal loans, credit and debit cards, payments and settlements, wealth management products, and funds and insurance agency services to retail customers. The Treasury Operations segment is involved in the foreign exchange transactions, customer-based interest rate and foreign exchange derivative transactions, money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment offers debt and equity underwriting, financial advisory, stock brokerage, investment research and asset management, and private equity investment services, as well as sells and trades in securities. The Insurance segment underwrites general and life insurance products; and provides insurance agency services. As of December 31, 2020, the company operated approximately 11,550 institutions, including 10,991 institutions in Chinese mainland; and 559 institutions in Hong Kong, Macau, Taiwan, and other countries. It is also involved in the aircraft leasing business. The company was founded in 1912 and is headquartered in Beijing, China. Bank of China Limited is a subsidiary of Central Huijin Investment Limited.

Companies with enterprise value similar to Bank of China