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Valuation

Market capitalisation

Also called: market capitalisation, market value, size

What the stock market says the whole company's shares are worth right now.

Formula

Market cap = Share price × Shares outstanding

Worked example

  1. Share price = $80.00
  2. Shares outstanding = 500.0m
  3. Market cap = $80.00 × 500.0m

Result: $40.0bn

How to read it

Large caps (over $10bn) tend to be steadier; small caps (under $2bn) can grow faster but swing more.

Worked example uses made-up figures for 'Example plc'

See it with real numbers: Any company page → (free account)

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