Trying to understand Altman Z Score

Discussion in 'Utilities and Apps' started by Stan, Jul 20, 2020.

Trying to understand Altman Z Score

  1. Stan

    Stan New Member

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    One of the factors in calculating the Z score (from the handout dated 09/03/2017) has Market Value of Equity. Getting the definition from Investopedia they say:

    FUNDAMENTAL ANALYSIS TOOLS FOR FUNDAMENTAL ANALYSIS
    Market Value Of Equity
    By JAMES CHEN
    Reviewed By GORDON SCOTT
    Updated Mar 11, 2020
    What is Market Value Of Equity?
    Market value of equity is the total dollar value of a company's equity and is also known as market capitalization. This measure of a company's value is calculated by multiplying the current stock price by the total number of outstanding shares. A company's market value of equity is therefore always changing as these two input variables change. It is used to measure a company's size and helps investors diversify their investments across companies of different sizes and different levels of risk.

    Investors looking to calculate market value of equity can find the total number of shares outstanding by looking to the equity section of a company's balance sheet.

    My handout is showing =0.6(hf_shareholder_equity_USD($b$2,c$2)/hf_Total_Liabilities($b$2,$c2)

    I think the method requires Number of Shares x Stock Price...

    Thank you,
    Ed
     
  2. marketxls

    marketxls Administrator
    Staff Member

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    We will get this checked and send you an email. We have a team member who is good with fundamentals value analysis.

    Kind Regards
    Ankur for MarketXLS
     

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