How big is a Ford Motor Company? By "market cap" (aka market capitalization aka equity value) it's ~$47 billion, but that measure of size doesn't take into account their debt! In fact, Ford's enterprise value is well over $100 billion. In this episode, we tackle the difference between equity value and enterprise value, and why enterprise value if market cap is quoted so much more frequently. Related topics we discuss include net debt, capital structure decisions and some valuation ratios including P/E (which uses equity value) and EV/EBITDA (where EV stands for enterprise value).