Apple:
Enterprise Value = Outstanding Shares * Individual Share Cost - Short-Term Debt
54,215,332 * 22 -9,353,870 = $1,183,383,434
Microsoft:
Enterprise Value = Outstanding Shares * Individual Share Cost - Short-Term Debt
3,095,000 * 22= $68,090,000
Apple's enterprise value was ~17.4% higher than Microsoft's enterprise value.
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You need to ADD the long term debt to get to the Enterprise Value as the valuation is the total amount of value investors ascribe to the entire company--and the amount of long term debt that investors will buy is an indication of this value.
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