Enter the current price of a share and the number of outstanding shares into the market capitalization calculator. The calculator will return the total market cap value in USD.

Market Capitalization Formula

The following formula is used to calculate the market cap of any company.

MC = PS * OS
  • Where MC is the market cap
  • PS is the price of 1 share
  • OS is the # of outstanding shares

To calculate the market cap, multiply the price of 1 share by the number of outstanding shares.

It’s important to note that this formula does not take into account any preferred shares or other outstanding securities that reflect a companies values.

Market Cap Definition

Market Cap is short for market capitalization and it is a financial term used to describe the overall value of a company based on the market perception of the company. In other words, it’s the value of the number of shares multiplied by the market price of those shares.

How to calculate market cap?

How to calculate a market cap?

  1. Determine the price of 1 share

    Through the use of Google or your trading dashboard, simply look up the company and stock ticker it’s traded under to find the price of one share.

  2. Determine the # of outstanding shares

    This can also be done through a trading platform or google. Sometimes the total # of outstanding shares can change if a company “dilutes” or buys back shares.

  3. Enter the information and multiply

    Enter those two values from the previous step into the formula or calculator above.


What is a market capitalization?

A market cap for short is one measure of the value of a company. It represents the current stock price of the company multiplied by the number of shares on the market. The higher the demand the higher price.

Does market cap represent company revenue?

Not always, a market cap is a better representation of the current performance and future perspectives of a company combined.