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May 31, 2024
9 Free Financial Modeling Lessons
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There is no distinction.
Market cap and equity value are both = shares * price This is similar to ebit and operating income = same
Equity value on the balance sheet is the only place where people get messed up.
"If price of stock goes up 10% today what happens to the balance sheet" answer is nothing. BS is a snap shot.
Is "equity value on the balance sheet" just shareholders' equity?
no, it's not on the balance sheet. sometimes, the # of shares outstanding/diluted shares outstanding is listed on the income statement, maybe at the bottom or a footnote...should be in the 10-K/Q. price of these shares fluctuate every day, so equity value/market cap changes.
From the Google: http://en.m.wikipedia.org/wiki/Equity_value
People get tossed on "equity value" versus "shareholders equity"
The above poster is correct
Yeah, I get that, but WallStreetPlayboys was saying that the "equity value on the balance is the only place where people get messed up," so I want to clarify what he means by this?
Market cap = equity value. There is no difference at all.
People confuse equity value with "shareholders equity".
Ie: Some people incorrectly believe share holders equity = equity value.
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