How do you calculate market cap?

Market cap is calculated by multiplying the number of shares outstanding by the current market price per share. For example, if a company has 1 million shares outstanding with a share price of $20, the market cap would be $20 million. Additionally, the market cap is often used to categorize companies by size.

What is the market cap of a company?

Market Capitalization (Market Cap) is the most recent market value of a company’s outstanding shares. The Market Cap is equal to the current share price multiplied by the number of shares outstanding. The investing community often uses market capitalization value to rank companies and compare their relative sizes in a particular industry or sector.

What is the difference between market capitalization and market value?

There’s one final distinction to understand: Market capitalization isn't the same as a company’s enterprise value. While market cap measures the value of a company’s equity, enterprise value measures the total value of the business, including its debts, assets and cash.

How do you calculate market capitalization?

Market capitalization refers to the total dollar market value of a company's outstanding shares. It is thus calculated by multiplying the total number of a company's shares by the current market price of one share. The investment community uses this figure to determine a company's size, and basically how the stock market is valuing the company.