Finance English
Analysis

What is Equity Value?

Equity Value The value of a company’s shareholders’ equity, calculated as market capitalization (shares outstanding times share price); used in valuation, reporting, and as a component of enterprise value.

Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

How is “Equity Value” Used in Practice?

Equity value increases when the company’s share price rises or when new shares are issued at a premium.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

What is Equity Value?

The value of a company’s shareholders’ equity, calculated as market capitalization (shares outstanding times share price); used in valuation, reporting, and as a component of enterprise value.

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