Market capitalization = share price × shares outstanding
Market capitalization
Market capitalization = share price × shares outstanding
Market capitalization represents the total market value of a publicly traded company's shares. It is calculated by multiplying the current market price of one share by the total number of outstanding shares. This metric provides investors with an understanding of the company's market value.
Example
If a company's share price is $50 and it has 2 million outstanding shares, its market capitalization would be $100 million ($50 × 2,000,000).
Remember this
Market capitalization helps investors assess the size and value of a company in the stock market.
Text adapted from Wikipedia, licensed under CC BY-SA 4.0.
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