Why do we look at both enterprise value and equity value?

• EV is capital-structure-neutral (value to all investors) while equity value is the value to shareholders; each suits different metrics
• They convey the same information, so analysts simply quote whichever one is more convenient in a given model
• One figure suffices, since EV and equity value always move in step and rank companies in the same order
• Equity value should exceed EV for any healthy firm, so tracking both serves mainly as a quick solvency check
• Equity value already bundles in debt and other senior claims, while EV strips them out to isolate the shareholders' residual stake
• Enterprise value is only meaningful for private targets, so public-company analysis relies on equity value alone