> Going back the the original post - EV is the real value of the company EV is one way of valuing a company. As is market cap. > Ford could sell down their de

> Going back the the original post - EV is the real value of the company EV is one way of valuing a company. As is market cap. > Ford could sell down their debt by issuing more equity Absolutely. It's logical to say that a company with less debt is worth more than a company with debt. And the same applies in reverse. Other ways that EV can be distorted, and market cap can be preferred, is whether the company choose to purchase capital assets financed via debt or lease them. For example, a company with big capital assets financed via debt could note that the company would be more profitable if they sold them and leased them back. The company is now more profitable, and its reasonable to say its 'better', but its EV has gone down.