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business valuation

This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.

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November 17, 2020 at 4:13 pm #595328
mirliz
Member
- Topics: 28
- Replies: 49
Hi, i’m sorry for this silly question.
But, does market value of share is the same as equity value of company?
November 17, 2020 at 4:27 pm #595331
John Moffat
Keymaster
- Topics: 57
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The market value is the equity value.
However the equity value of the company is the market value per share multiplied by the number of shares.
November 17, 2020 at 4:34 pm #595332
mirliz
Member
- Topics: 28
- Replies: 49
ohh i see, now i understand. Can i know why is it like that for equity value of company?
November 18, 2020 at 8:41 am #595387
John Moffat
Keymaster
- Topics: 57
- Replies: 54780
Because the equity value of a company is the value of the equity in the whole company (as opposed to just the value of each share).
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