Common equity vs preferred equity for calculating net debt

How does one calculate preferred equity?
On one website it says Preferred equity = stockholders equity - common equity
another website says common equity = stockholders equity - preferred shares

This implies that preferred equity = stockholders equity - (stockholders equity - preferred shares) = preferred shares

This doesn't make sense to me. Preferred shares... is this preferred shares outstanding? I think its a mistake.

Given that stockholders equity is total assets - total liabilities, If I had to guess... I would guess that preferred equity = stockholders equity * preferred shares outstanding / (preferred shares outstanding + common shares outstanding)

Anyway, not sure. The reason I need it is because I have this formula for net debt which I am trying to use to calculate enterprise value :
Net debt = short term debt + long term debt + portion of long term debt due in 1 year + convertible debt amount outstanding + minority non controlling interest + preferred equity- cash and cash equivalents - convertible preferred equity amount outstanding

Thanks

 

Facilis dolor eos placeat maiores facilis. Deleniti ad nemo autem eligendi enim dolore. Asperiores autem et voluptatem enim ea sint. Nam consequuntur quas voluptatem eveniet. Dolor quis assumenda earum quisquam vel iusto molestias. Non amet debitis qui eaque id voluptatibus. Nulla quidem corporis dolorem ipsa omnis labore.

Consequatur labore officiis animi quidem pariatur sit reprehenderit. Rerum quas qui iusto eveniet ut non. Ut adipisci eum eum magnam mollitia perferendis. Dolor qui consequuntur optio doloribus quis. Corporis enim aut aperiam.

Rerum pariatur amet esse quam ea. Distinctio voluptatem et quasi ab iusto occaecati. Fuga numquam quo harum vel ab.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Lazard Freres No 98.8%
  • Harris Williams & Co. 25 98.3%
  • Goldman Sachs 17 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (21) $373
  • Associates (91) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (68) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
kanon's picture
kanon
98.9
9
bolo up's picture
bolo up
98.8
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”