EV formula

Hi,

In one of the mock question, the EV seems to = Value of Equity + LT Debt - Cash

why does short term debt such as note payable not included in the calculation?

thank you!

I am asking the same question. Why?

Because that is a part of current liability .

EV is like the acquisition concept. You still need to pay the debt for the company if you need to acquire it. Thanks.

Frank

EV is like the acquisition concept. You still need to pay the debt for the company if you need to acquire it. Thanks.

Frank