Market cap isn't saying what the 'company' is worth. It's a measure of the equity portion of the ownership of the company. It excludes the debt portion of the ownership. Right now GM has an enterprise value of $130B.…
I think market cap is a bit misleading. Enterprise value (market cap + net debt) is a more consistent valuation measure. The house analogy is a helpful one. Let's say I buy a million dollar house but I only have $100K…
Market cap isn't saying what the 'company' is worth. It's a measure of the equity portion of the ownership of the company. It excludes the debt portion of the ownership. Right now GM has an enterprise value of $130B.…
I think market cap is a bit misleading. Enterprise value (market cap + net debt) is a more consistent valuation measure. The house analogy is a helpful one. Let's say I buy a million dollar house but I only have $100K…