*Equity = Assets - Liabilities *

But what asset and liability values are we going to use? The answer as always: it depends on what we are going to use it for.

Below is a map of how different equity value metrics apply in different "value-investing" type situations and in situations well beyond value:

As shown in the chart:

1 @piggyback will try to keep its "piggybacking" research of public capital allocator strategies to the left-most fundamental "Value" parts of the stock market distribution. There we can cover anything from bargain-basement "Liquidations" scenarios to quite richly valued "Growth Franchises" (call this GARP or Quality, depending on terminology).

2 Nothing wrong to move into the rightmost Venture (if you have the special skills and connections) or pure price speculation parts of the stock market. We should just not fool ourselves we can motivate these activities with any precision using fundamental "valuation", whether that is multiples or actual valuation models. It is a different beast.

New and old stock investors interested in fundamental investing find this whole Background in PiggyBack's recent Shades of Value.

Q to @commonstock users below