Why do we look at both enterprise value and equity value?
- They are the same number expressed differently
- We do not; enterprise value is the only useful figure when considering valuation
- Equity value is always larger than EV
- EV is only used for private companies
- Equity value includes debt and EV does not
- EV is capital-structure-neutral (value to all investors) while equity value is the value to shareholders; each suits different metrics
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