1. What is Market Capitalization?

Market Capitalization (Mcap) 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 simple formula:

Where:

• \( Shares \) — Total number of outstanding shares
• \( Price \) — Current price per share in USD

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

3. Importance of Market Capitalization

Details: Market cap is used to determine company size, compare companies within the same industry, and assess investment risk and potential.

4. Using the Calculator

Tips: Enter the total number of outstanding shares and the current price per share in USD. 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 are companies classified by market cap?
A: Generally: Large-cap (>$10B), Mid-cap ($2B-$10B), Small-cap ($300M-$2B), Micro-cap (<$300M).

Q3: Does market cap reflect the actual company value?
A: It reflects the market's perception of value at a given time, which may differ from book value or intrinsic value.

Q4: How often does market cap change?
A: It changes continuously during trading hours as the stock price fluctuates.

Q5: Can market cap be manipulated?
A: While stock prices can be influenced, market cap is generally a reliable metric as it reflects actual trading prices.