High Risk
A high EV to Mcap ratio suggests that a company carries significant debt or liabilities relative to its market value, indicating increased financial risk. Among the Nifty 200 stocks, the top five companies have a high enterprise value compared to their market cap, according to StockEdge’s valuation scan data. This could also mean the company has limited cash reserves or a disproportionately high enterprise value compared to its equity, potentially influencing investor sentiment and valuation. Enterprise Value (EV) is the total value of a company, including its market capitalization, debt, and excluding cash. It represents the cost of acquiring the entire business.
