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.

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## 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

It’s important to not 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

**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.

**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.

**Enter the information and multiply**Enter those two values from the previous step into the formula or calculator above.

## FAQ

**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, market cap is a better representation of current performance and future perspectives of a company combined.

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