ELI5: Explain Like I'm 5

Equity value

Equity value is a way of measuring the value of a company's stock. Companies offer shares or "pieces" of their business to people who want to invest in them. When they do, they offer their shares at a certain price. This price makes up a company's equity value. People who invest in a company are buying a little piece of it and hope it will make them money as the company grows and succeeds.