Market capitalization

Share price × shares outstanding: what the market values the company's whole equity at.

Formula

Market cap = Share price × Shares outstanding

How to read it

Size, not value: it ignores debt and cash, which enterprise value includes.

How to use it

Sets a company's size class — mega, large, mid, small, micro.

Also called: market cap, market capitalization, mkt cap.

Related terms

The whole glossary · Investing tools