1. What is Market Capitalization?

Market capitalization (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. Market cap is used to determine a company's size and compare companies within the same industry.

2. How Market Cap is Calculated

The calculator uses the market cap formula:

Where:

• Current Price — The latest trading price of a single share (USD)
• Total Shares — The total number of shares outstanding

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 helps investors understand a company's size, risk profile, and growth potential. Companies are typically categorized as:

• Large-cap: $10 billion+
• Mid-cap: $2-$10 billion
• Small-cap: $300 million-$2 billion
• Micro-cap: $50 million-$300 million

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Does market cap equal company value?
A: Market cap reflects the market's valuation of equity only, not the entire company value which includes debt and other factors.

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

Q3: What's the difference between market cap and enterprise value?
A: Enterprise value includes debt and cash, providing a more complete picture of a company's total value.

Q4: Why do companies have different share counts?
A: Share counts vary due to stock splits, share buybacks, secondary offerings, and other corporate actions.

Q5: Where can I find current share counts?
A: Outstanding shares are reported in company financial statements and on most financial data websites.