Market Capitalization

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 based on a stock's percentile within total market cap of all stocks: mega-cap large-cap, mid-cap, small-cap, and micro-cap. The thresholds YCharts uses can be found below. Market cap is not always an accurate indication of value because it does not account for debt and other factors.

Giant Cap: > 330 billion
Large Cap: 330 billion - 63 billion
Mid Cap: 63 billion - 13 billion
Small cap: 13 billion - 3 billion
Micro cap: < 3 billion

Market Capitalization = Number of Shares Outstanding x Price