Equity Value vs. Market Cap.

What's the difference between these two terms? I have seen them used interchangeably in some resources but different in others. Can someone please help me in distinguishing both terms? Both include cash, right?

8 Comments
 
WallStreetPlayboysThere 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?

 
ddp34
WallStreetPlayboysThere 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.

 

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