⁉️A company has $50 of equity value, $50 of debt, and no cash. 🤔🧐 Enterprise Value = Equity Net Debt ‼️ If the company generates $1 of cash flow the next day, what’s the enterprise value? $99 $100 $101 … The answer is that the enterprise value doesn’t change and remains at $100. Questions like this exist to test whether you really understand the concept of enterprise value, or just memorized the traditional formula. Real Life Explanation: The simplest way to understand this is to think about a