Quote:
Originally Posted by Frank MetaMusil
It's the size of a company as viewed by the public.
Market cap reflects only the equity value of a company. A more comprehensive measure is enterprise value (EV), which includes debt and other factors. Insurance firms use a value called the embedded value (EV).
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Ah okay.
Reason I'm asking is because the latest issue of Forbes had the top 100 companies for a bunch of categories. Market cap wasn't one of the categories which had me wondering why its so important.
Thanks!