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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 NSE midcap stocks, the top seven companies have a high enterprise value compared to their market capitalization, according to StockEdge’s valuation scan data.
This may also imply that the company has limited cash reserves or a disproportionately high enterprise value relative to its equity, which could impact investor confidence and the company’s market valuation. Enterprise Value (EV) represents the total value of a company, including its market capitalization and debt, minus cash. It reflects the theoretical cost of acquiring the entire business.
