3 ms·
You're thinking of market value, I think. Enterprise value is primarily (market value + debt - cash). Market value does not include debt.
by atombender 5y ago
You're thinking of market value, I think. Enterprise value is primarily (market value + debt - cash). Market value does not include debt.
- rich_sasha 5y agoYeah, so if I have 2 companies with same intrinsic value but one with, one without debt, the one with debt has lower market cap. Hence “deflated”.
- bdcravens 5y agoNot explicitly, but it can influence the price, in turn influencing the market value.