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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by deepsun on Monday March 13, 2023 @12:02AM (#35130875)
Better count "enterprise value" than market cap, as that's the price the company is worth.
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Re:Joint Statement by the Department of the Treasury, Federa... by BlueTemplar on Monday March 13, 2023 @12:12PM (#35137772)
What is the difference and where can you see it ?
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Re:Joint Statement by the Department of the Treasury, Federa... by deepsun on Wednesday March 15, 2023 @07:26PM (#35176089)
Here is full info: [1]

As I see it, market cap/valuation _should_ resemble the price you'd need to pay to buy a company, but it often is not. E.g. a company has marketcap of 10B, but has 30B in liquid cash on hand. It's clear it cannot be bought for 10B. Or the other way around, the company has 30B in liabilities -- the company should pay you 20B to be bought.

[1] https://www.investopedia.com/terms/e/enterprisevalue.asp

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