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What Is Equity Value?

By Kristi Waterworth – Updated Dec 31, 2024 at 4:57PM

Key Points

  • Equity value measures total shareholder investment, differentiating from market cap by including all shareholder types.
  • Enterprise value adds company debts to equity value, offering a fuller financial snapshot and future direction.
  • To calculate equity value, subtract debts and add cash equivalents to enterprise value.
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