Market Capitalization (Market Cap) - Explained
What is Market Capitalization?
Written by J. Mance Gordon
Updated at April 22nd, 2024
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What is Market Capitalization?
Market capitalization, also known as Market Cap, refers to the collective value of the company. That is, it is the value of all company ownership shares issued and outstanding by a company.
Market capitalization can be determined by identifying the value of the company through a valuation method.
Further, the Market Cap can be calculated as multiplying the trading value of stock by the total number of outstanding ownership shares.
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- Common-Size Analysis (Vertical Analysis) of Financial Statements
- Common-Size Financial Statement
- Net Dollar Retention
- Horizontal Analysis
- Per Share Basis
- Profitability Ratios
- Gross Margin Ratio
- Profit Margin
- After Tax Profit Margin
- Return on Assets
- Total Shareholder Return
- Cash on Cash Return
- Earnings Per Share
- Diluted Earnings Per Share
- Asset Turnover Ratio
- Berry Ratio
- Break-Even Analysis
- Liquidity Ratio
- Current ratio (Working Capital Ratio)
- Working Ratio
- Quick Ratio
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- Accounts Payable Turnover Ratio
- Inventory turnover ratio (often converted to average sale period)
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- Leverage Ratio (Debt Ratio)
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- Debt to Income Ratio
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