Exactly, I argue here (https://news.ycombinator.com/item?id=39754171) that "market cap" is probably better than this strange "enterprise value" for the stated goals of the formula, which is to compare how valuable companies are in an intuitive way for your average person.
My point being that the market cap already includes (partially) the debt and cash priced in, while this whole debt is positive, cash is negative is "if you wanted to buy the company". We do not use "country debt" to measure how "valuable" a country is, we use GDP for a reason.
My point being that the market cap already includes (partially) the debt and cash priced in, while this whole debt is positive, cash is negative is "if you wanted to buy the company". We do not use "country debt" to measure how "valuable" a country is, we use GDP for a reason.