Market Value Of Equity

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Dictionary Says

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.
Investopedia Says

Investopedia explains '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.
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'Market Value Of Equity'

  • What's the difference between book and market value?

    http://www.investopedia.com/ask/answers/183.asp
    ... time, the difference between book and market values indicates ... topic, check out the
    articles Value By The ... More ». Bank Rates. Savings; Home Equity; Mortgage; Auto. ...

  • Equity Valuation In Good Times And Bad

    http://www.investopedia.com/articles/fundamental-analysis/09/equity-valuation-good-bad.asp
    ... ER) is found by the following formula: (market value of debt + market value of stock ...
    Return on Equity Return on equity (ROE) can be estimated several ways, one ...

  • 3 Ways To Value Real Estate Investments

    http://www.investopedia.com/articles/mortgages-real-estate/12/value-real-estate-investments.asp
    ... of 2.5%, the capitalization rate of an equity property would be summed as 11.5%
    (6+1.5+1.5+2.5). If net operating income was $200,000, the market value of the ...

  • Using The Price-To-Book Ratio To Evaluate Companies

    http://www.investopedia.com/articles/fundamental/03/112603.asp
    ... value. Price-to-book value (P/B) is the ratio of market price of a company's
    shares (share price) over its book value of equity. ...

  • Valuing Firms Using Present Value Of Free Cash Flows

    http://www.investopedia.com/articles/fundamental-analysis/11/present-value-free-cash-flow.asp
    ... weighted average cost of capital If you are looking to find an estimate for the
    value of the firm’s equity, subtract the market value of the firm’s debt. ...

  • Cheap Stocks Or Value Traps?

    http://www.investopedia.com/articles/stocks/09/companies-trade-for-less-than-cash.asp
    ... Enterprise value is the value of the whole business; in its simplest form, it is
    defined as market value of equity plus debt minus cash and equivalents. ...

  • How To Calculate A Z-Score

    http://www.investopedia.com/articles/fundamental/04/021104.asp
    ... Capital/Total Assets B = Retained Earnings/Total Assets C = Earnings Before Interest
    & Tax/Total Assets D = Market Value of Equity/Total Liabilities E = Sales ...

  • Achieving Better Returns In Your Portfolio

    http://www.investopedia.com/articles/05/021705.asp
    ... that three risk factors: market (beta), size (market capitalization) and price
    (book/market value) dimensions explain 96% of historical equity performance. ...

  • Digging Into Book Value

    http://www.investopedia.com/articles/stocks/07/book_value.asp
    ... (To keep reading on book value, see Value By The Book.) Equity investors often compare
    BVPS to the market price of the stock in the form of the market price ...

  • Portfolio Management Pays Off In A Tough Market

    http://www.investopedia.com/articles/stocks/09/constant-mix-buy-hold.asp
    ... of a constant-mix and buy-hold rebalancing strategy, each starting with 60% equity
    and 40 ... Now, if the stock market rallies back to initial value, we see ...

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