Market Capitalization Calculator
Calculate the total market value of a company's outstanding shares and determine company classification
Calculate Market Capitalization
Current market price of a single share
Total shares owned by all shareholders
Market Capitalization Results
Enter values to calculate
Fill in the share price and outstanding shares to see market cap results
Market Cap Analysis
Example Calculation
Technology Company Example
Company: Example Tech Corp
Share Price: $100 per share
Outstanding Shares: 10 million shares
Calculation
Market Cap = Share Price × Outstanding Shares
Market Cap = $100 × 10,000,000
Market Cap = $1,000,000,000 (1 Billion)
Classification: Small-Cap (under $2B threshold)
Company Size Classifications
Investment Considerations
Large-Cap Benefits
- • Lower volatility
- • Steady dividends
- • Established market presence
- • Better liquidity
Mid-Cap Benefits
- • Balanced risk-reward
- • Growth potential
- • Innovation focus
- • Market expansion opportunities
Small-Cap Benefits
- • High growth potential
- • Market inefficiencies
- • Acquisition targets
- • Niche market leaders
What is Market Capitalization?
Market capitalization, commonly referred to as "market cap," represents the total dollar market value of a company's outstanding shares of stock. It is calculated by multiplying the current market price of one share by the total number of outstanding shares.
Company Valuation
Market cap provides a quick way to determine the size and value of a company in the market. It reflects what investors believe the company is worth based on its stock price.
Investment Classification
Companies are classified as large-cap, mid-cap, or small-cap based on their market capitalization, helping investors understand risk levels and growth potential.
Market Capitalization Formula
Basic Formula
Market Capitalization = Share Price × Outstanding SharesThis simple formula multiplies the current price of a single share by the total number of shares available to the public and institutional investors.
Share Price
The current market price at which one share of the company's stock is trading. This price fluctuates throughout trading hours based on supply and demand.
Outstanding Shares
The total number of shares currently owned by all shareholders, including institutional investors and company insiders, but excluding treasury shares.
Related Financial Calculators
Enterprise Value Calculator
Calculate total company value including debt
P/E Ratio Calculator
Calculate price-to-earnings ratio for valuation
Dividend Yield Calculator
Calculate annual dividend yield percentage
EPS Calculator
Calculate earnings per share
ROI Calculator
Calculate return on investment percentage
Stock Calculator
Comprehensive stock analysis tools