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Equity value vs Stockholders Equity

Economics Asked by Berta on April 12, 2021

Is equity value is the same as stockholders equity? I have been given liabilities and stockholders equity total also and I need to calculate the leverage ratio, but I not sure what numbers should I use and whether I need to calculate the equity value using asset value and etc. or I could just plug in the number.

One Answer

"Stockholder's equity" is how we label Equity in corporations, so it should be identical to the general concept of "Equity", except if, by a confusing misuse of words, by "Stockholder's equity" the authors meant "Shareholder Capital", which sometimes it is used to mean only a part of Equity (the nominal (par) value of shares issued), the other main parts of Equity being "Paid up capital" (amounts paid "above par"), various "Reserves", Retained Earnings.

Answered by Alecos Papadopoulos on April 12, 2021

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