Name: Generac Holdings Inc. (NYSE:GNRC) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Generac Holdings Inc., current enterprise value calculation

Current share price (P)	$252.06
No. shares of common stock outstanding	63,830,918
US$ in thousands
Common equity (market value)¹	16,089,221)
Add: Noncontrolling interests (per books)	313)
Total equity	16,089,534)
Add: Short-term borrowings (per books)	72,035)
Add: Current portion of long-term borrowings and finance lease obligations (per books)	5,930)
Add: Long-term borrowings and finance lease obligations, excluding current portion (per books)	902,091)
Total equity and debt	17,069,590)
Less: Cash and cash equivalents	147,339)
Enterprise value (EV)	16,922,251)

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 252.06 × 63,830,918

Generac Holdings Inc., EV calculation

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Share price^1, 2	$282.47	$333.04	$107.31	$51.97	$46.20
No. shares of common stock outstanding¹	63,783,651	62,861,442	62,567,525	62,129,621	62,325,716
US$ in thousands
Common equity (market value)³	18,016,968)	20,935,375)	6,714,121)	3,228,876)	2,879,448)
Add: Noncontrolling interests (book value)	313)	(89)	469)	712)	279)
Total equity	18,017,281)	20,935,286)	6,714,590)	3,229,588)	2,879,727)
Add: Short-term borrowings (book value)	72,035)	39,282)	58,714)	45,583)	20,602)
Add: Current portion of long-term borrowings and finance lease obligations (book value)	5,930)	4,147)	2,383)	1,977)	1,572)
Add: Long-term borrowings and finance lease obligations, excluding current portion (book value)	902,091)	841,764)	837,767)	876,396)	906,548)
Total equity and debt	18,997,337)	21,820,479)	7,613,454)	4,153,544)	3,808,449)
Less: Cash and cash equivalents	147,339)	655,128)	322,883)	224,482)	138,472)
Enterprise value (EV)	18,849,998)	21,165,351)	7,290,571)	3,929,062)	3,669,977)

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Generac Holdings Inc. Annual Report.

³ 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 282.47 × 63,783,651

The financial metrics indicate a period of rapid valuation expansion between 2017 and 2020, followed by a moderate correction in 2021.

Market Equity Expansion: Common equity market value experienced exponential growth, increasing from 2,879,448 thousand USD in 2017 to a peak of 20,935,375 thousand USD in 2020. This represents a substantial escalation in market capitalization over the four-year period, with the most aggressive growth occurring between 2019 and 2020.
Enterprise Value (EV) Trajectory: Enterprise Value closely mirrored the trajectory of market equity, rising from 3,669,977 thousand USD in 2017 to 21,165,351 thousand USD in 2020. The sharp increase observed between December 31, 2019, and December 31, 2020, highlights a significant spike in the perceived total value of the business operations.
Capital Structure Analysis: The narrow margin between the market value of common equity and the total equity and debt suggests a capital structure heavily weighted toward equity. Throughout the observed period, the alignment between total equity and common equity market value indicates that valuation changes were primarily driven by equity market fluctuations rather than significant shifts in debt financing.
2021 Valuation Correction: A downward trend is observed across all primary valuation metrics in 2021. Enterprise Value contracted to 18,849,998 thousand USD and common equity market value decreased to 18,016,968 thousand USD. This shift indicates a correction following the peak valuation reached at the end of 2020.

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Generac Holdings Inc. (NYSE:GNRC)

Enterprise Value (EV)