What is market cap?

What is 'Market Capitalization'. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to using sales or total asset figures.

What is the difference between market cap and free-float market cap?

Market cap vs. free-float market cap. Market cap is based on the total value of all a company's shares of stock. Float is the number of outstanding shares for trading by the general public. The free-float method of calculating market cap excludes locked-in shares, such as those held by company executives and governments.

Is the market cap a good indicator?

However, it is worth noting that while the market cap is an important metric to consider, it’s only a compliment to an entire suite of indicators that must be acknowledged. If for nothing else, the market cap alone is indicative of nothing. It is not until the market cap is combined with other research that it becomes more telling.

What is market capitalization?

Market capitalization refers to the total dollar market value of a company's outstanding shares of stock. Commonly referred to as "market cap," it is calculated by multiplying the total number of a company's outstanding shares by the current market price of one share.