When calculating EV, what should be added to the equity value?

In calculating Enterprise Value (EV), it is essential to consider the total value of a company's operations, which includes both its equity value and various components that represent the firm's obligations and available assets. The correct choice involves adding debt and non-controlling interests to the equity value.

Debt is added to the equity value because it represents capital that the company must repay to lenders and is part of the total capital structure. Non-controlling interests are included because these represent equity in subsidiaries not owned by the parent company and are considered part of the total enterprise value since they reflect additional claims on the company’s cash flows.

In contrast, options like only cash and equivalents, only fixed assets, or market cap and liabilities do not fully capture the total obligations and operational value of the business. Cash and equivalents, while important, are subtracted from EV calculations as they can be seen as offsets to the debt, rather than being added. Fixed assets may contribute to the company's operational value but do not represent claims or obligations that need to be added to equity value for the purpose of calculating EV. Adding market cap and liabilities is also incorrect because it does not provide a comprehensive view of the capital structure needed to assess enterprise value properly.