Interesting article here regarding the distinction between the...

Interesting article here regarding the distinction between the share price (market cap) and enterprise value.

http://www.thebull.com.au/premium/a/57165-oil-shock:-buying-opportunity-or-value-trap.html

Excerpt;

"Finally, perhaps the best reason to consider buying is the Enterprise Value of each of the producers. When companies and private equity firms are on the prowl for acquisitions, one of their favorite measures of valuation is the Enterprise Value. Market capitalization is simply a measure of what market participants think a stock is worth. Enterprise Value (EV) is considered a better measure of a company’s worth in that it goes beyond market cap and factors in a company’s total debt, cash, and cash equivalents such as liquid inventory and accounts receivables. Every stock in the table has an EV higher than its market cap, with the EV at BHP, ORG, and STO doubling the market cap."