Market Capitalization Calculator
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Market Capitalization Formula
The formula to calculate market capitalization is:
\[ MC = PS \times OS \]
Where:
- MC is the market cap
- PS is the price of one share
- OS is the number of outstanding shares
Market Cap Definition
Market capitalization represents the total market value of a company's outstanding shares, calculated by multiplying the stock price by the number of shares. This value is often used to assess the company’s size and market performance.
How to Calculate Market Cap?
- Determine the price of one share: Use a trading platform or financial website to find the current price.
- Determine the number of outstanding shares: This information is available through financial sources like stock reports.
- Enter the values and multiply: Use the formula or the calculator to find the total market cap.
FAQ
-
What is market capitalization?
Market cap is a measure of a company's total value based on its share price and number of outstanding shares. -
Does market cap reflect company revenue?
Not directly. It’s a reflection of market sentiment and company prospects, not just revenue.
This calculator provides a quick way to determine the market value of a company based on available share data, helping investors evaluate its overall market standing.