Home Back

Market Capitalization Calculator

Market Capitalization Formula:

\[ \text{Market Cap} = \text{Price per Share} \times \text{Number of Shares} \]

USD
shares

Unit Converter ▲

Unit Converter ▼

From: To:

1. What is Market Capitalization?

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

2. How Does the Calculator Work?

The calculator uses the market capitalization formula:

\[ \text{Market Cap} = \text{Price per Share} \times \text{Number of Shares} \]

Where:

Explanation: This simple multiplication gives the theoretical total value the market places on the company.

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 assessing risk and potential returns.

4. Using the Calculator

Tips: Enter the current share price in USD and the total number of outstanding shares. 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 value, while enterprise value includes debt and cash in the company's valuation.

Q2: How often does market cap change?
A: Market cap changes continuously as the stock price fluctuates during trading hours.

Q3: What are typical market cap categories?
A: Large-cap ($10B+), mid-cap ($2B-$10B), small-cap ($300M-$2B), micro-cap ($50M-$300M), and nano-cap (<$50M).

Q4: Does market cap reflect the 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 outstanding shares data?
A: Company financial statements, SEC filings (10-K, 10-Q), or financial websites typically report outstanding shares.

Market Capitalization Calculator© - All Rights Reserved 2025