Equity value

The value of what the shareholders own, after everyone with a prior claim has been paid.

From an enterprise valuation, subtract net debt, minority interests and any preferred capital, then add back non-operating assets that the enterprise cash flows excluded, such as surplus cash or a stake in an unconsolidated business.

The bridge is where careful work is either done or skipped, and skipping it is how a good operating analysis produces a wrong share price. Investments in associates, real estate held for sale and cash trapped in subsidiaries all belong somewhere, and each is a decision.

Build the bridge line by line and show it.