Also called market capitalisation, market capitalization
Market cap
What the market currently values the equity at.
How it is calculated
Market cap = price × shares outstanding
A fuller explanation of this one is still being written. The definition above is the short answer.
See also
- Enterprise value — The value of the whole operating business, before asking who has a claim on it. Debt holders are paid before shareholders, so this is not yet what the shares are worth.
- Equity value — What is left for shareholders once the lenders have been paid.
- Shares outstanding — The share count that converts a whole-company equity value into a per-share figure. Getting it wrong scales every valuation by exactly the same error.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
