Market Capitalization - Related Measures

Related Measures

Market cap reflects only the equity value of a company. It is important to note that a firm's choice of capital structure has a significant impact on how the total value of a company is allocated between equity and debt. A more comprehensive measure is enterprise value (EV), which includes debt, preferred stock, and other factors. Insurance firms use a value called the embedded value (EV).

Read more about this topic:  Market Capitalization

Famous quotes containing the words related and/or measures:

    A parent who from his own childhood experience is convinced of the value of fairy tales will have no difficulty in answering his child’s questions; but an adult who thinks these tales are only a bunch of lies had better not try telling them; he won’t be able to related them in a way which would enrich the child’s life.
    Bruno Bettelheim (20th century)

    Away with the cant of “Measures, not men!”Mthe idle supposition that it is the harness and not the horses that draw the chariot along. No, Sir, if the comparison must be made, if the distinction must be taken, men are everything, measures comparatively nothing.
    George Canning (1770–1827)