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 share price by the total number of outstanding shares.

2. How Does the Calculator Work?

The calculator uses the Market Cap formula:

Where:

• Share Price — Current price of one share in dollars
• Outstanding Shares — Total number of shares currently owned by all shareholders

Explanation: This simple multiplication gives the total theoretical value the market places on the company.

3. Importance of Market Cap

Details: Market Cap is used to determine a company's size, compare companies within the same industry, and categorize companies (large-cap, mid-cap, small-cap).

4. Using the Calculator

Tips: Enter the current share price in dollars and the total number of outstanding shares. 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, while enterprise value includes debt and cash in the company's valuation.

Q2: How often should market cap be calculated?
A: Market cap changes constantly as share prices fluctuate throughout the trading day.

Q3: What are typical market cap categories?
A: Large-cap (>$10B), Mid-cap ($2B-$10B), Small-cap ($300M-$2B), Micro-cap ($50M-$300M), Nano-cap (<$50M).

Q4: Does market cap reflect the actual value of a company?
A: It reflects what the market is willing to pay for the company, which may differ from book value or intrinsic value.

Q5: Can market cap be manipulated?
A: While share price can be influenced by various factors, outstanding shares are typically stable unless new shares are issued or bought back.