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?
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?
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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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