I have always failed to understand the true meaning of enterprise value. What I do know is how to, find out all the free cash flows, terminal cash flow, discount them and end up with an "Enterprise value". I get confused when people tell me that this number inherits debt, and more confused when they say this is what I would pay for the company. I also get confused when they differentiate .
Can someone please be a savior, consider me an amateur, and break it down for me in some simplified explanation?
Also what is the difference in getting an enterprise value using DCF and getting it this way: Enterprise Value = Market Cap + Debt - Cash?