The equity calculation is supsicious to me right now because product inventories are included in the calculation.  When a company spends $1000 to create product, they receive an inventory asset worth $1000 in return.  At best this is optimistic and at worst it is bad accounting.  If a company plows millions into inefficiently manufacturing something, the resulting product shouldn’t be treated with the same value as cash.

I’m concerned that this leads to mis-representation in the stock market and does not sufficiently punish companies with poor production and logistics processes.  It lengthens the amount of time it takes for poor performance to be detected.

Two solutions present themselves:

1) Establish a formula to determine liquidation value of inventory, independent of how much money was spent to manufacture said inventory.  Use this liquidation value in the equity calculation.

2) Remove inventory from the equity calculation altogether.  Inventory should be worth nothing until it is sold.

What makes you think that inventories are part of equity value?

My stock page currently reports that my company (SUMR) has equity per share of $203.68.  There are 1,000,000 shares outstanding, which suggests total equity of $203,680,000.

The balance sheet for SUMR shows the following:
Cash $66,770,251
Inventories $97,468,273
Constructions $39,450,000

This comes out to a total of $203,688,524, which is strikingly close to the estimated total equity using the equity per share, with the deviation completely attributable to loss of precision from the equity per share number.

Coincidence?  Or are inventories being counted?

Inventories are not counted. At least not directly. 

Equity = Issued Capital + Retained Earnings

In your case: 150’000’000 + 53’688’524 = 203’688’524

Which translates in an equity per share of $203.68.

When a company spends $1000 to create product, they receive an inventory asset worth $1000 in return.

This is not correct. Production costs are not included (and you are right it would be bad accounting). Products are added to the inventory value at cost. Production doesn’t result in value or profit creation.

Your solution (1) is what’s implemented and the liquidation value you speak about is the purchase cost (or resource value for mines).