Share your insights or perspective on the financial matter presented in the input.

Problems with Enterprise Value and better valuation techniques
This is an example from another field, real estate. Suppose you buy a $100,000 house with a 20 percent down payment, or $20,000, and borrow the other $80,000. In this example, your "equity" or "market cap" is $20,000. But the total value, or "enterprise value" of the house, is actually $100,000, counting the $80,000 mortgage.  "Enterprise value" is what a buyer would have to pay to own the company or the house "free and clear," counting the debt.