When you hear the words “market capitalization” or “market value,” you might wonder what the difference is between the two.As can be seen from the information above, market capitalization and enterprise value are very different things. While market capitalization is a simple way to determine the value of a company, enterprise value is a much more complex metric that takes debt and equity into consideration. Furthermore, market capitalization does not take the price of shares owned by the company into account while enterprise value does.Thus, while market capitalization is a valuable metric, it is important to remember that it is not the same as enterprise value. Similarly, while book value and net asset value are important metrics as well, they are different from market capitalization and each other.
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