RMontgomery

Hey actually Enterprise value (EV) is total market value of equity and debt after talking out Cash and Short term investment from it. Also it only include long term debt market value and not current debt.

So to calculate value of equity from EV, we need to add back cash deduction which we already did and then reduce maket value of LT debt from it.

Hope I answered your query. Revert me if you still have some doubt.

Thanks