This is the Difference Between Market Cap and Enterprise Value

🔥 Mastering Financial Markets: The Ultimate Beginner's Course: 🔥 From Zero to One in Global Markets and Macro Investing A new self-paced online course that explores how financial markets work through stories, examples, charts and infographics, giving you enough context to make sure "it clicks." 🚀 Check it out 👉 https://courses.perfiliev.com/p/mastering-financial-markets ▪️ Follow me on Twitter: https://twitter.com/perfiliev ▪️ Follow me on LinkedIn: https://www.linkedin.com/in/sergei-perfiliev/ ▪️ Subscribe to the Channel: https://www.youtube.com/@PerfilievFinancialTraining Frequently I see confusion between Market Cap and Enterprise Value. Specifically, if both metrics show the value of a company - why are they different? In this video, I hope to clarify any confusion between them, using a simple analogy. Chapters: 0:00 Introduction 1:15 What is the Market Cap? 1:56 How is Enterprise Value Different? 2:22 The House Analogy 5:05 When is Enterprise Value Useful?