Great Basin Gold Ltd. (fka GBGLF)

[TheTop]

IMO thinking of enterprise value as the "true" price rules out all well-managed franchises. A company that's able to earn high returns on capital is well-managed if it sells some debt to raise capital.

It's good to look at the level of debt and see if it can be serviced under the worst of conditions. If it can.... fine.

Think of Wells-Fargo. No value investor would have ever bought the company if one had added the debt to the equity to get the "true" price.

Or Loews

Or Berkshire

Or Vodafone