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:
“So universal and widely related is any transcendent moral greatness, and so nearly identical with greatness everywhere and in every age,as a pyramid contracts the nearer you approach its apex,that, when I look over my commonplace-book of poetry, I find that the best of it is oftenest applicable, in part or wholly, to the case of Captain Brown.”
—Henry David Thoreau (18171862)
“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 (17701827)