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Parent is referring to total enterprise value, which is the right way to compare the value of businesses with different amounts of leverage. Imagine if you bou
by amcaskill 5y ago
Parent is referring to total enterprise value, which is the right way to compare the value of businesses with different amounts of leverage.
Imagine if you bought a restaurant for $100 cash, and I bought an identical restaurant with $50 cash and $50 of debt against the business. Both restaurants are worth $100.