Market capitalization

A company’s current share price multiplied by its outstanding share count at a specified time, accounting for different share classes as applicable. It measures market equity value, not enterprise value.

Market capitalization in round numbers

Hypothetical at one measurement time: a company has one share class with 10 million outstanding shares at US$25 per share, giving market capitalization of US$250m. A private company can have an estimated equity value even without a quoted market capitalization.

Scroll horizontally to read all columns.

Hypothetical single share class at one time
MeasureAmount
Outstanding shares10 million
Share priceUS$25 per share
Market capitalization10m × US$25 = US$250m

Source: SEC Investor.gov: Market capitalization.

Book value · P/E ratio · EPS · Public equity · All of the glossary