Market Capitalization Calculator
Calculate the market capitalization (market cap) of a company. Market cap represents the total value of all outstanding shares and is a key metric for assessing company size and investment universe classification.
Company Share Information
Market Cap Results
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Understanding Market Capitalization
Market capitalization, commonly known as market cap, is the total value of a company's outstanding shares of stock. It represents what the market believes the company is worth and is calculated by multiplying the current share price by the total number of outstanding shares.
Market Cap Formula
Basic Formula
- Market Cap = Share Price × Outstanding Shares
- Share Price = Current trading price per share
- Outstanding Shares = Total shares issued and held by investors
- Expressed in millions, billions, or trillions
Alternative Formula
- Market Cap = Total Equity Value
- Represents shareholder ownership value
- Changes with share price fluctuations
- Does not include debt or other liabilities
Market Cap Categories
Company Size Classification
Standard market capitalization categories
Large Cap ($10B+)
- Established, stable companies
- Lower volatility
- Institutional investor focus
- S&P 500, Dow Jones components
Mid Cap ($2B-$10B)
- Growth potential
- Moderate volatility
- Mix of institutional and retail investors
- Russell Midcap Index
Small Cap ($300M-$2B)
- Higher growth potential
- Higher volatility
- Retail investor focus
- Russell 2000 Index
Micro Cap (<$300M)
- Highest risk/reward
- Limited liquidity
- Speculative investments
- Often OTC traded
Why Market Cap Matters
Investment Strategy
- Portfolio diversification
- Risk assessment
- Index fund composition
- Asset allocation decisions
Market Analysis
- Market concentration
- Sector representation
- Economic indicators
- Market sentiment
Market Cap vs Other Metrics
| Metric | What It Measures | Advantages | Limitations |
|---|---|---|---|
| Market Cap | Equity value | Simple, widely used | Ignores debt |
| Enterprise Value | Total business value | Comprehensive | More complex |
| Revenue | Sales volume | Stable metric | Ignores profitability |
| Assets | Company resources | Balance sheet focus | Historical values |
Market Cap Changes
Share Price Changes
- Direct impact on market cap
- Market sentiment
- Earnings reports
- Economic conditions
Share Count Changes
- Stock splits/reverse splits
- Secondary offerings
- Share buybacks
- Employee stock options
Index Weighting and Market Cap
Market Cap Weighting
- S&P 500 uses market cap weighting
- Larger companies have more influence
- Automatic rebalancing
- Represents market value
Equal Weighting
- All companies equal weight
- Smaller companies more influence
- Russell 2000 style
- Different risk/return profile
Key Takeaways for Market Capitalization
- Market Cap = Share Price × Outstanding Shares represents the total equity value of a company
- Companies are classified as Large Cap ($10B+), Mid Cap ($2B-$10B), Small Cap ($300M-$2B), or Micro Cap (<$300M)
- Market cap determines index eligibility and investor universe
- Larger market cap companies tend to be more stable but offer lower growth potential
- Market cap changes with share price movements and share count changes
- Market cap weighting is used in major indices like the S&P 500
- Market cap alone doesn't indicate investment quality or value
- Compare market cap to enterprise value for a more complete picture