Market Capitalization

Valuation & Fundamentals

The share price multiplied by the total number of shares outstanding.

It is the price the market puts on the whole company at that moment and changes with every tick of the stock. It is the most common way to rank companies by size, and indexes such as the S&P 500 weight their members by it.

Example

A company with a $50 share price and 2 billion shares outstanding has a market cap of $100 billion.

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