What is market capitalization (market cap)?

Market Capitalization (Market Cap) is the most recent market value of a company’s outstanding shares. Market Cap is equal to the current share price multiplied by the number of shares outstanding. The investing community often uses the market capitalization value to rank companies

What is a market cap & how do you calculate it?

Shorthand for "market capitalization," market cap is one way an investor can evaluate how much a company is worth. Market cap refers to the total value of a publicly traded company's shares. To determine a company's market cap, simply multiply the share price by the number of shares outstanding. Here's Costco Wholesale ( NASDAQ:COST) as an example.

Why is market cap important?

Market cap can be a valuable tool for an investor who is watching stocks and evaluating potential investments. Market capitalization is a quick and easy method for estimating a company's value by extrapolating what the market thinks it is worth for publicly traded companies.

What is the market cap of a treasury stock?

Profit and prosper with the best of expert advice - straight to your e-mail. So, for example, if a company has 10 million shares that are issued and outstanding (i.e., are not being held by the company as treasury stock) and the stock price is $10 per share, its market cap is $100 million. At $100 per share, its market cap is $1 billion.