Market Capitalization

Browse all terms in Glossary

Definition

Market Capitalization (Market Cap) is a measurement of business value based on share price and number of shares outstanding. It generally represents the market's view of a company's stock value and is a determining factor in stock valuation.

For example, if a company has 1.5 million shares outstanding at a share price of $25, its market cap is $37.5 million (1.5 million x $25). Companies can be categorized based upon the size of their market capitalization.

There are five basic groups: mega-cap (market cap over $200B), large-cap ($10B–$200B), mid-cap ($2B–$10B), small-cap ($300M–$2B), and micro-cap ($50M-$300M). Market cap is not always an accurate indication of value because it does not account for debt and other factors.

Formula

Market Capitalization = Number of Shares Outstanding x Price

Analysis Tutorial

Related Terms

Enterprise Value, KZ Index, Price, Shares Outstanding, Valuation

Recent Quotes

Symbol Price Chg Chg % Market Cap
XIN 2.68 -0.19 -6.62% 206.17M
XIDE 2.29 -0.03 -1.29% 178.89M
XHE 52.27 -1.10 -2.07%
XG 2.95 +0.15 +5.36% 283.67M
XEL 27.96 -0.06 -0.21% 13.61B
XEC 51.29 -1.98 -3.72% 4.396B
XCO 6.90 -0.30 -4.17% 1.495B
XBKS 4.15 +0.00 +0.00% 43.37M
XBI 78.30 -2.14 -2.66%
XATA 0.81 +0.05 +6.56% 8.651M
You must be signed in to use watchlists.
Sign In or Register
Create Watchlist from Stock Quotes
Close