Market Capitalization (Market Cap) - Explained
What is Market Capitalization?
Written by Jason Gordon
Updated at April 17th, 2022
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
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.
Back to:INVESTMENTS & TRADING
Related Topics
- Trend Analysis of Financial Statements
- 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
- Quick Assets
- Days Sales Outstanding
- Cash Ratio (Operating Cash Flow Ratio)
- Receivables turnover ratio (often converted to average collection period)
- Accounts Payable Turnover Ratio
- Inventory turnover ratio (often converted to average sale period)
- Solvency (Coverage Ratios)
- Leverage Ratio (Debt Ratio)
- Asset Coverage Ratio
- Debt to Equity
- Debt to Income Ratio
- Debt Coverage Ratio
- Times Interest Earned
- Market Capitalization
- Price to Equity Ratio
- Book-To-Market Ratio
- Price to Earnings Ratio
- Price to Earnings Growth (PEG) Ratio
- Price to Earnings Growth Payback Ratio
- CAPE Ratio
- Price to Cash Flow Ratio
- Capital Maintenance
- Book to Bill Ratio
- Asset Turnover Ratio
- Plowback Ratio
- Days Inventory Outstanding
- Days Payable Outstanding
- Days Sales Outstanding
- Non-financial Performance Measures: The Balance Scorecard
