retroactive_airdrop
## Why Smart Investors Ignore Market Cap and Use Enterprise Value Instead
When evaluating whether a company is truly expensive or cheap, most retail investors make a critical mistake: they only look at market capitalization. They miss the full picture. Enterprise value (EV) is the metric that reveals what you're *actually* paying for a business, just like knowing the true cost of that used car after accounting for the cash you found in the trunk.
Think of it this way: if you acquire a company with $10 billion market cap but it carries $5 billion in debt you must assume, plus $1 billion in cash
When evaluating whether a company is truly expensive or cheap, most retail investors make a critical mistake: they only look at market capitalization. They miss the full picture. Enterprise value (EV) is the metric that reveals what you're *actually* paying for a business, just like knowing the true cost of that used car after accounting for the cash you found in the trunk.
Think of it this way: if you acquire a company with $10 billion market cap but it carries $5 billion in debt you must assume, plus $1 billion in cash