A measure of the value of a company's common equity, typically on a fully diluted basis. For a public company, the equity value is a company's market capitalization. In a private company context, equity value is often used along with enterprise value in circumstances requiring a business valuation, such as in the acquisition of a target company (for example, in a buyout of a private company or a going private transaction) or in a minority investment. An acquiror of a business can use equity value in measuring what to pay for the target company. Equity value can be expressed formulaically as the company’s enterprise value less its outstanding preferred stock and funded debt plus the company’s cash and cash equivalents.