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One measure of how much a company is worthand a not so good one at that.
Your shareholder equity is just one measure of a company's worth, and not a widely used one. It's assets minus liabilities or paid in capital, plus retained earnings. A company may have negative shareholder equity yet still be "worth" a lot.
An extreme example here. Lets say you take out a large loan to finance a project that is expected to produce tremendous return. Your debt to equity ratio is now reversed. That doesn't make the company insolvent or worthless.
There are many ways to value a company. Shareholder equity is a good tool, but I wouldn't say it was the best way to value a company. The only way it really comes into effect is if the company dissolves and debts paid off and capital distributed to the shareholders.
QFT.