Equity value will tell you what a company is worth.
Enterprise value tells you how much it would cost to acquire a company in totality.
Enterprise Value
+ Available Cash
- Debt
= Equity Value
Equity Value
Valuation of Equity/ Equity Value formula
= Common Shares Outstanding * Share Price
Enterprise Value
Enterprise Value formula
= Equity Value – Cash + Debt + Minority Interest + Preferred Stock
OR
EV = market value of common stock + market value of preferred equity + market value of debt + minority interest - cash and investments.
Need to back out net debt
Reference: Finance Walk
