How do you treat preferred equity in the EV-Equity bridge?

Preferred equity is a hybrid − between debt and common equity. Treatment as debt-like: deduct from EV, because common-equity holders do not 'own' the preferred. Mark-to-market: for listed preferred, the market price × count. For private preferred: the liquidation preference (often book value + accrued dividends). Pitfall: convertible preferreds (mandatory or optional) − treasury-stock method or conversion adjustment depending on strike vs. stock price. Preferred equity is largely a US/UK phenomenon and rare in middle-market Europe. Where a listed company does have preference shares, take market value and disclose them separately.