Yes, think of the EV as the actual amount it would cost to buy the company, not just the cost of buying every share (market cap)
If you bought a company for $10 million and when you turn up for work you discover $5 million in a drum in the cellar, then that company really only cost you $5 million.
Same goes for a company you buy for $10 million that has a loan for $5 million, you now have to repay that loan so the company in fact cost you $15 million plus interest in the years to come.
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