10 8
Figure 13: Ford’s debt-to-equity ratio
Debt-Equity Ratio 6 5 4 3 2 1 0
1/1/2018
1/1/2019
1/1/2020
1/1/2021
1/1/2022
Figure 14: Graph of Ford’s debt-to-equity ratio The value of Ford Motors According to Yahoo Finance (2023), the share of Ford is trading at $12. The common stock outstanding for the company is 4139 million. Therefore, the market capitalization of the company is $49.751 billion. However, the valuation will use the enterprise value approach to determine the value of the company because the enterprise value approach takes into account the cash and debt of the company. Thus, the value of the company is $146.155 billion. This is the value BYD will pay to acquire Ford Motors. The valuation is summarized in the following figure.
