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:

    “The content of a thought depends on its external relations; on the way that the thought is related to the world, not on the way that it is related to other thoughts.”
    —Jerry Alan Fodor (b. 1935)

    “However much we may differ in the choice of the measures which should guide the administration of the government, there can be but little doubt in the minds of those who are really friendly to the republican features of our system that one of its most important securities consists in the separation of the legislative and executive powers at the same time that each is acknowledged to be supreme, in the will of the people constitutionally expressed.”
    —Andrew Jackson (1767–1845)