Talk:Equity value

First Attempt[edit]

I referenced equity value in my edits to the article on market capitalization, so this is my attempt to define that term. This is a working definition of equity value according to my professional understanding of it - my finance text book does not address this term explicitly, nor do the online financial glossaries that I have checked.

I intend to expand the calculations section to include treasury-share method and the concept of fully-diluted equity value.

mullacc 16:02, 12 October 2005 (UTC)[reply]

This article is completely wrong. Equity value and EPS are completely different concepts. And if you are calculating market cap using diluted shares outstanding the calculation in the example doesn't hold. You should define equity value as the residual value of the company after debt obligations are paid. If you want to use EPS in the example it should be Fully diluted EPS * P/E = Equity value. The more obvious calculation would be enterprise value - net debt - minority interest - preferred stock = equity value.

And you didn't even remember to subtract preferred stock dividends from your EPS calculation. Or discuss nondilutive convertible securities. —Preceding unsigned comment added by 75.187.168.40 (talk) 00:32, 24 November 2008 (UTC)[reply]

Hi[edit]

Equity value is the value of a company available to owners or shareholders. It is the enterprise value plus all cash and cash equivalents, short and long-term investments, and less all short-term debt, long-term debt and minority interests. 139.167.171.223 (talk) 17:23, 5 October 2022 (UTC)[reply]