1. What is Market Capitalization?

Market capitalization (market cap) is the total market value of a company's outstanding shares. It is calculated by multiplying the current share price by the total number of outstanding shares.

2. How Does the Calculator Work?

The calculator uses the market cap formula:

Where:

• Shares Outstanding — Total number of shares currently held by all shareholders
• Share Price — Current price of a single share in USD

Explanation: This simple multiplication gives the theoretical total value of all company shares at the current market price.

3. Importance of Market Cap

Details: Market cap is used to determine company size, compare companies, and categorize stocks (large-cap, mid-cap, small-cap). It's a key metric for investors and analysts.

4. Using the Calculator

Tips: Enter the total number of outstanding shares and the current share price. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between market cap and enterprise value?
A: Market cap only considers equity, while enterprise value includes debt and cash in its valuation.

Q2: How often does market cap change?
A: Market cap changes constantly as share prices fluctuate during trading hours.

Q3: What are the market cap categories?
A: Generally: Large-cap (>$10B), Mid-cap ($2B-$10B), Small-cap ($300M-$2B), Micro-cap ($50M-$300M), Nano-cap (<$50M).

Q4: Does market cap reflect actual company value?
A: It reflects what the market is willing to pay, which may differ from book value or intrinsic value.

Q5: Where can I find shares outstanding data?
A: Company financial statements, SEC filings (10-K, 10-Q), or financial websites like Yahoo Finance.