Market Cap Calculator
Instantly calculate a company's total market valuation
Calculation Result
Total Market Cap: $0.00
Classification: N/A
How to Calculate Market Cap
Market capitalization, or "market cap," represents the total dollar market value of a company's outstanding shares of stock. It is the primary metric used by the investment community to determine a company's size and evaluate its risk profile relative to other firms.
The Market Cap Formula
Market Cap = Current Share Price × Total Outstanding Shares
Example Calculation
If "Company A" has 10 million shares outstanding and the current market price per share is $50, the market capitalization would be calculated as:
- Share Price: $50
- Shares Outstanding: 10,000,000
- Market Cap: $50 × 10,000,000 = $500,000,000 (Small-Cap)
Market Cap Categories
Investors typically categorize companies based on their market valuation to balance risk and growth potential:
| Category | Market Value |
|---|---|
| Mega-Cap | $200 Billion or more |
| Large-Cap | $10 Billion – $200 Billion |
| Mid-Cap | $2 Billion – $10 Billion |
| Small-Cap | $300 Million – $2 Billion |
| Micro-Cap | $50 Million – $300 Million |
Why Does Market Cap Matter?
While many investors focus on the share price, the market cap is a more accurate measure of a company's total value. It helps in diversifying a portfolio, as large-cap stocks tend to be more stable, while small-cap stocks often offer higher growth potential but come with increased volatility.