DCF produces Enterprise Value – the total worth of the business to all capital providers, including debt holders. Subtracting net debt (total debt minus cash on hand) converts this to Equity Value – the portion belonging to shareholders specifically. Without this adjustment, you’re comparing enterprise value to share count and producing a per-share number that overstates what each share is actually worth. The worked example above demonstrates this adjustment explicitly – net debt of ₹150 Crores reduced the equity value before the per-share calculation.