Market Cap Calculator
Calculate a company's market capitalization from its share price and shares outstanding.
Frequently Asked Questions
What is market capitalization?
Market capitalization (market cap) is the total dollar value of a company's outstanding shares. It represents what the market thinks a company is worth at any given moment. It is calculated by multiplying the current share price by the total number of shares outstanding.
How do you calculate market cap?
Multiply the current stock price by the total number of shares outstanding. For example, a company with 1 billion shares trading at $50 each has a market cap of $50 billion. The number of shares outstanding is found in the company's quarterly filings.
What are the market cap categories?
Companies are grouped by size. Mega-cap is over $200 billion (Apple, Microsoft). Large-cap is $10-200 billion. Mid-cap is $2-10 billion. Small-cap is $300 million to $2 billion. Micro-cap is below $300 million. These categories help investors compare companies of similar size.
Why is market cap important for investors?
Market cap tells you the overall size of a company, which relates to risk and growth potential. Larger companies tend to be more stable but grow slower. Smaller companies carry more risk but may have higher upside. Most index funds weight holdings by market cap.