Enterprise Value is most often used by finance professionals to understand the value of a business as if it was being bought out immediately. It is the total amount of dollars that would be necessary to effectively buy the company (not including stock price premiums and transaction fees), calculated by taking the market capitalization of the company, subtracting out cash, and adding back total debt. It is also usually adjusted for other payments that might be needed to be made, such as pension obligations, financial leases, and minority interest. For this number to be negative implies that there is an arbitrage opportunity.
Zuoan Fashion Ltd. (NYSE: ZA) – $3.20
Apparel & Accessories
Zuoan Fashion Ltd. (Zuoan) is a China-based casual menswear company. The Company’s products are designed in-house and sold under its Zuoan brand. The Company offers a range of products, including men’s casual apparel, footwear and lifestyle accessories, primarily targeting urban males between the ages of 20 and 40. Zuoan sells its products through a distribution network covering 31 of China’s 32 provinces and centrally administered municipalities, as well as through its direct stores. Its products are primarily sold to customers through retail stores operated by its distributors and their sub-distributors.
- Market Cap: $26,775,814
- Enterprise Value: -$163,621,628
- Total Revenue (LTM): $153,450,717
- YTD Price Change: 17.4%
China Xiniya Fashion Ltd. (NYSE: XNY) – $2.37
Apparel & Accessories
China Xiniya Fashion Limited is a holding company. The Company, through its operating wholly-owned subsidiary Fujian Xiniya Garments and Weaving Co., Ltd., provides men’s business casual apparel in People’s Republic of China. The Company designs and manufactures men’s business casual and business formal apparel and accessories, which are marketed under the Xiniya brand, and sells through its distribution network. The Company focuses on creating products that feature style, design, fabrics and craftsmanship.
- Market Cap: $33,730,534
- Enterprise Value: -$136,226,558
- Total Revenue (LTM): $131,346,875
- YTD Price Change: 7.2%
China Modern Agricultural Information Inc. (OTC: CMCI) – $0.60
Fishing & Farming
China Modern Agricultural Information, Inc., formerly Trade Link Wholesalers, Inc., is a producer and distributor of raw fresh milk in the People’s Republic of China. The Company has three operating entities with an aggregate fresh milk production capacity of approximately 125 tons (approximately 3,969 gallons) per day. It also has 39 individual partners with an aggregate fresh milk production capacity of approximately 251 tons per day.
- Market Cap: $30,798,000
- Enterprise Value: -$48,255,920
- Total Revenue (LTM): $64,942,330
- YTD Price Change: 21.1%
China Techfaith Wireless Communication Technology Ltd. (NASDAQ: CNTF) – $1.20
Wireless Telecommunications Services
China Techfaith Wireless Communication Technology Limited (Techfaith) is a China-based mobile solutions provider for the global mobile handsets market. The Company is engaged in the original design and development of mobile handsets under its customer’s brands and its own brands for consumers and enterprises, and the sales of finished products to its local and international customers. Techfaith operates through three segments: original designed product (ODP), Brand name phone sales and Game.
- Market Cap: $63,520,255
- Enterprise Value: -$44,100,745
- Total Revenue (LTM): $96,668,000
- YTD Price Change: 6.2%
Gravity Co Ltd. (NASDAQ: GRVY) – $3.43
Toys & Juvenile Products
Gravity Co., Ltd. (Gravity) is a developer and publisher of online games in Japan and Thailand. The Company offers five online games across the world. Gravity’s principal product, Ragnarok Online, a multiplayer online role playing game, is commercially offered in Korea, and around 70 other countries and markets. Gravity categorizes its products into three categories: online games; mobile games and applications, and other games and game-related products and services, including character-based merchandise and animation. The Company also offers a range of mobile games, console games and a game for Internet protocol television (IPTV), and licenses the merchandizing rights of character-related products based on its online games.
- Market Cap: $11,848,222
- Enterprise Value: -$27,019,605
- Total Revenue (LTM): $37,831,930
- YTD Price Change: -26.7%
