Hi, I'm looking for clarification here on enterprise value in comparison to equity value etc. I understand the main difference, equity value is the value to shareholders, while enterprise value is the value to all capital providers (debt,equity), but I have seen all the stuff about preferred equity and minority shares and I'm confused where that all fits in.
For one, I've seen when calculating value using a DCF, you forecast FCFF, discount with WACC, and get EV, then you subtract debt and add cash to get to equity value, the amount that should be paid to shareholders for all shares, right?
But then how does this work when you consider this?:
IF this is true, then shouldn't when you use a DCF, do EV-debt-preferred-minority+cash = equity value?
or am I misinterpreting the meaning of equity value compared to market cap.
Thanks for the help.