As a thought exercise, what is the relevant "price" to acquire a company when the share price has fallen to zero (just before bankruptcy)? Free is the wrong answer.
How much does it cost to acquire a lemonade stand with $1B in the bank, and a market cap of 1.000001B?
Enterprise value will give an accurate "price" in both of these examples.
It explains my perspective.
As a thought exercise, what is the relevant "price" to acquire a company when the share price has fallen to zero (just before bankruptcy)? Free is the wrong answer.
How much does it cost to acquire a lemonade stand with $1B in the bank, and a market cap of 1.000001B?
Enterprise value will give an accurate "price" in both of these examples.