Aggregate value: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Classify page.)
imported>Doug Williamson
(Add abbreviation.)
 
Line 34: Line 34:
* [[Efficient market]]
* [[Efficient market]]
* [[Enterprise]]
* [[Enterprise]]
* [[Enterprise value]]
* [[Enterprise value]] (EV)
* [[Entity]]
* [[Entity]]
* [[Equity]]
* [[Equity]]

Latest revision as of 12:28, 14 June 2023

1. Traditional corporate finance.

(AV).

The total value of a commercial business, whether funded by equity alone or by a combination of equity and debt.

This total value - in this context - is also known as the 'enterprise value' or 'entity value'.


In traditional corporate finance, where the business is funded by both debt and equity the AV is given by:

AV = market value of debt + market value of equity


Sometimes known as the Aggregate Market Value (AMV).


2. Equity.

The total market value of all of the equity - from all sources and in all locations - being used to fund a company.

This amount is also sometimes known as the Aggregate Market Value (AMV).


3. Valuation - cost.

Any total value, or total cost, calculated by adding up all the different elements that make it up.


See also