Equity Value
Short definition
Equity value is what remains for owners after net debt and NCI are taken out of EV. It can match FCFE discounted at Ke or P/E × net income; those are different assumption sets.
Detailed explanation
For a listed name, market cap is an observation; intrinsic value is another model. Control premium and minority discount change which share is being valued. Squeeze-out and listing valuation reports bind method and discounts separately.
Options, convertibles and dividend policy move dilution and FCFE. The net-debt definition moves equity value one-for-one.
Why it matters for the CFO
Deal price, dividend capacity and management equity awards hang on this number. Mixing EV with an equity price is a large error in a levered firm.
How it is calculated
Özkaynak değeri = EV − Net borç − Azınlık ± diğer köprü kalemleri
Variables in the formula
- Equity value: Value remaining for owners
How to read it
Equity value / book = P/B. Below 1 is not automatically distress; it can be ROE < Ke or asset quality.
Numerical example
EV 1,220 mn TL, net debt 420 → equity value = 800 mn TL.
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.