What is Market Capitalization?
Market Capitalization Calculator: Market capitalization, often referred to as "market cap," is a measure of a company's total value in the stock market. It is calculated by multiplying the company's current stock price by its total outstanding shares.
Calculate Market Capitalization
Result:
Formula for Market Capitalization
The formula for calculating market capitalization is:
Market Capitalization = Current Stock Price × Total Outstanding Shares
Why Use a Market Capitalization Calculator?
A Market Capitalization Calculator simplifies the process of evaluating a company's worth by performing the calculations for you. This tool is especially helpful for:
- Investors assessing company size and potential growth.
- Portfolio managers balancing investments by company size.
- Analysts comparing companies within the same industry.
How to Use the Market Capitalization Calculator
- Enter the current stock price of the company.
- Provide the total number of outstanding shares.
- Click "Calculate" to instantly determine the company's market capitalization.
Benefits of Knowing Market Capitalization
Understanding a company's market cap helps categorize it as a:
- Large-cap: Companies with a market cap over $10 billion.
- Mid-cap: Companies with a market cap between $2 billion and $10 billion.
- Small-cap: Companies with a market cap below $2 billion.
This categorization is crucial for evaluating risk and growth potential in investments.