Market Capitalization
The total market value of all a company's outstanding shares.
What is Market Cap?
Market capitalization — or market cap — is calculated by multiplying the current share price by the total number of shares outstanding, representing the market's consensus estimate of a company's total equity value. It is the most common measure of company size, used to classify stocks as micro-, small-, mid-, large-, or mega-cap. Market cap differs from enterprise value because it only captures equity, not debt or cash, making enterprise value a more complete picture for acquisition analysis.
Formula
Market Cap = Share Price × Shares Outstanding
Worked Example
Worked example — Apple Inc. (AAPL)
FY2024 (Sept 28, 2024)
Step 1 Share price: $226.51
Step 2 Shares outstanding: 15,408M (diluted)
Step 3 Market cap = $226.51 × 15,408M = $3,490,066M
Step 4 → Apple’s total equity market value was approximately $3.49 trillion
Source: Apple Annual Report FY2024 (2024-11-01)
Calculate Market Cap
Current market price per share
Market Cap
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Not investment advice.
How to Interpret Market Cap
< 2000
Small Cap — under $2B
2000 – 10000
Mid Cap — $2B to $10B
10000 – 200000
Large Cap — $10B to $200B
> 200000
Mega Cap — $200B and above