What is difference between equity value and enterprise value

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Question - You recently started work as a financial analyst in the private wealth department at a major bank, making investment recommendations for wealthy individuals. Some of these wealthy individuals are extremely knowledgeable about investments, whereas others have much less financial experience and ask you lots of questions. You have noticed that many of these questions are very similar, so you have decided to prepare a 'Frequently Asked Questions' section for your company website to address some of these. Your manager thinks this is a good idea, and has asked you to focus on the following four questions in particular:

Q1: What is the difference between 'equity value' and 'enterprise value'?

Q2: Are multiples the best way of valuing shares?

Q3: Is a high P/E multiple a good thing?

Q4: Is it useful to compare company performance against an industry average?

Reference no: EM133130274

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