Valuation Terms
Market Capitalization
The total market value of a public company based on its share price and shares outstanding.
Also called: market cap
What it means
Market capitalization, often called market cap, is calculated by multiplying a company's current share price by the total number of shares outstanding. It gives a rough measure of the company's size in the market.
Why it matters
Market cap helps users compare companies by size and understand labels like large cap, mid cap, and small cap.