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