Momenta Pharmaceuticals, Inc. (MNTA)

[jbog]

dfrai,

EV is a simple number, you take the marketcap add all the debt, preferred shares etc and then subtract the cash or cash equivilents.

Momenta has a Market-Cap of around $555 million plus lease obligations of maybe $25 million. That gives it about $580 million and then we take away about $220 million in cash. That would give Momenta a EV of about $360 million.

If the stock goes up by a buck, the EV would increase by around $55 mil and so would their Market-Cap.

If they sign a 25 year lease for $10 mil a year their EV would increase by $250 mil but their market-cap wouldn't budge.

EV has nothing to do with any products or anything with earnings, expenses etc.

The products, earnings, pipeline good and expenses should all be represented by the Market-Cap.