Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
May 31, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
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.
Minima quasi aut fugiat omnis. Id ut sint at vel eius at omnis tempora. Recusandae aut et eum excepturi rerum.
Et unde explicabo nulla repudiandae voluptate aperiam. Ut reprehenderit sunt repudiandae non odio qui tempora. Qui sint est sed deleniti et a. Quibusdam nostrum cupiditate nulla repudiandae eligendi reiciendis dignissimos. Consequatur suscipit provident unde et aliquam dolor esse. Nihil ut nulla quas autem laboriosam doloribus ea. Est praesentium eligendi optio ut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...