A company raises $100M of new equity. What happens to Enterprise Value?

How to answer

Mechanically, nothing. Equity value rises $100M, but cash also rises $100M, and you subtract cash in the bridge — they offset, so EV is unchanged. The new cash is non-operating, and EV reflects only the operating business. That's the point: EV is capital-structure neutral. Caveat: in practice the share price can move on the announcement (dilution/signaling vs. de-risking), which would shift EV — but holding price constant, EV is flat.

Key idea: Saying EV rises $100M because equity value went up — forgetting the offsetting cash nets out. The opposite trap is over-claiming 'EV never moves.'