Equity and enterprise value are two important concepts when it comes to corporate finance. Equity, or book value, is the amount shareholders would theoretically receive if a business was liquidated, including both common and preferred stock. Enterprise value, on the other hand, is the total value of a company’s assets minus its liabilities and intangible assets such as patents and copyrights. In other words, enterprise value takes into account factors such as debt, cash, or minority interest, giving a more comprehensive picture of a company’s worth. When comparing companies in the same industry, look at their equity and enterprise value to get a better understanding of which one is currently more valuable.