How to calculate a business owner's net worth?
Everyone knows that to calculate a company's enterprise value, you add the equity and net debt values. Say a company's equity value is 6 billion and has 4 billion in net debt, the total enterprise value is 10 billion.
But say the company is 100% owned by one individual. In calculating his net worth, would the calculation be to subtract net debt from equity value, meaning his net worth would only be 2 billion?
So in this case, the company would be "worth" 10 billion but the owner is only worth 2 billion?
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