💼📈 Whether you’re analyzing a company as an investor, founder, or financial analyst, Equity Value is a key metric. It represents the total value of a company’s shares — and it’s essential for valuations, mergers, acquisitions, and IPO planning.
In this article, we’ll explain what equity value is, how to calculate it, and give you a calculator to run the numbers yourself.
Table of Contents
🙋 What Is Equity Value?
Equity Value (also known as Market Value of Equity) is the value of a company’s shares outstanding. It reflects the portion of a business that belongs to shareholders.
It is commonly used to:
- Assess company valuation
- Compare businesses in public markets
- Determine shareholder value in mergers or buyouts
Use the calculator below to quickly compute equity value from any stock price and number of shares:
🧮 Equity Value Formula
The basic formula is:
Equity Value = Share Price × Total Shares OutstandingFor more advanced analysis (Enterprise Value to Equity Value), you may also subtract debt and add cash, but this article focuses on the market value of equity only.
📊 Example Calculation
Let’s say:
- The company’s share price is $50
- It has 10 million shares outstanding
Equity Value = $50 × 10,000,000 = $500,000,000So the company has an equity value of $500 million.
🔀 Equity Value vs. Enterprise Value
- Equity Value includes only shareholders’ interest
- Enterprise Value includes shareholders and debt holders (and subtracts cash)
Equity Value is what investors receive. Enterprise Value is what buyers pay.
💡 Final Thoughts
Equity value is a foundational concept in finance and investing. It tells you what shareholders’ stake is worth and helps you make smarter valuation decisions. Use the calculator above to quickly estimate any company’s equity value — public or private.