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:
“Perhaps it is nothingness which is real and our dream which is non-existent, but then we feel think that these musical phrases, and the notions related to the dream, are nothing too. We will die, but our hostages are the divine captives who will follow our chance. And death with them is somewhat less bitter, less inglorious, perhaps less probable.”
—Marcel Proust (1871–1922)
“To have the fear of God before our eyes, and, in our mutual dealings with each other, to govern our actions by the eternal measures of right and wrong:MThe first of these will comprehend the duties of religion;Mthe second, those of morality, which are so inseparably connected together, that you cannot divide these two tables ... without breaking and mutually destroying them both.”
—Laurence Sterne (1713–1768)