Market Value Of Equity


DEFINITION of 'Market Value Of Equity'

The total dollar market value of all of a company's outstanding shares. Market value of equity is calculated by multiplying the company's current stock price by its number of outstanding shares. A company's market value of equity is therefore always changing as these two input variables change. A company's market value of equity differs from its book value of equity because the former does not take into account the company's growth potential.


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BREAKING DOWN 'Market Value Of Equity'

Market value of equity is basically a synonym for market capitalization. It is used to measure a company's size and helps investors to diversity their investments across companies of different sizes and different levels of risk.

  1. Outstanding Shares

    A company's stock currently held by all its shareholders, including ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  3. Floating Stock

    The number of shares available for trading of a particular stock.
  4. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  5. Mid Cap

    A company with a market capitalization between $2 and $10 billion.
  6. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
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