It involves determining the fair market value of a company’s stock, considering various factors such as its financial performance, future prospects, and market conditions. Financial analysts are typically concerned with the market value of equity, which is the current price or fair value they believe shares of the business are

As mentioned, it is the product of a company’s outstanding number of shares and its share’s market price. If negative, the company’s liabilities exceed its assets; if prolonged, this is considered balance sheet insolvency. Typically, investors view companies with negative shareholder equity as risky or unsafe investments. This model is