I have a question regarding the Enterprise Value calculation. Simply put, it is+ Debt - Cash. I always reminded myself that it is the same as total assets minus cash, but now I have come to the conclusion that this is likely wrong for the reason that Accounts Payables and likely other posts are not included in the Enterprise Value calculation. Let's say I have 200 in real estate assets, 50 in accounts payables and 50 in long term debt. This would mean my Enterprise Value is 100 (equity) + 50 debt = 150, which does not reflect the total asset value of a house. I could understand Enterprise Value's point if it would simply be total assets minus cash, but now that posts like AP are not included I really do not see why you would calculate it.
I hope you can help me out.