- Enterprise Value (EV) measures the total value of the company Whereas Market Cap evaluates only market value of equity portion
- Market cap denotes about market value of the company
- Number of shares oustanding * Previous Closing Pricing
State the Difference between Market Cap & EnterPrise Value
State the Calculation methods of Market Cap:
- Free float market capitalization methodology takes into consideration ONLY those shares which are available for public trading.
- It doesn't include shares held by the promoters, the government, etc.
- Some companies, which is having high holding by the promoters will loose out on the market cap valuations.
Investors Choice withrespect to MarketCap: