Preferred Equity is the net number of preferred shares multiplied by the par or stated value per share as presented in the company's balance sheet.
There are several things worth considering before using this in a model:
First, as a practical matter for a company preferred equity functions more as debt without an expiration date than it does like common equity. The line is further muddied by the presence of convertible options attached to many preferred shares. The requirement to pay preferred dividends is almost as serious as it is to repay debt.
Second, because of its similarity in practical effect to other obligations like accounts payable and debt, this line should probably be removed from total equity when using shareholders equity. In fact, in order to avoid this and other adjustments (particularly non-redeemable non-controlling interest) we advise that users consider simply using common equity in lieu of shareholders equity.