For a portfolio company:
if NAV (often also known as the Fair value in PE) + Debt = Total Assets, and Enterprise Value = Debt - Cash + Equity
Then can I say that NAV (which is most of the time marked-to-market) = Equity Value and hence Total Assets = Enterprise Value + Cash?
Is there a conceptual error here?
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If you think about what a company's assets are, you realize that it's just their debt and equity (the fundamental equation of accounting). Subtract cash from that and you get what the organization is worth, what exactly is wrong here?
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