Equity value | Practical Law

Equity value | Practical Law

Equity value

Equity value

Practical Law UK Glossary 4-554-3066 (Approx. 4 pages)

Glossary

Equity value

The value of a company available to its owners or shareholders.
In the context of the acquisition of a private company, equity value is often used by a buyer along with enterprise value to determine what it is prepared to pay for the acquisition. Equity value can be expressed formulaically as the company’s enterprise value less its total outstanding long and short-term debt and debt like instruments, plus its cash and cash equivalents.