Answered By: Michael Coffta
Last Updated: Feb 28, 2020     Views: 35

Market Capitalization (or Market Cap) refers to the total market (common equity) value of a company on any given day.  It is the total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.

Number of shares outstanding X current stock price = Market Cap

Market Cap may be easily found at Yahoo! Finance.  Simply lookup the company by its ticker.

Although one could use Yahoo! Finance to calculate the number of Shares Outstanding by dividing the Market Cap by the stock price, one may also use ValueLine Investment Survey to learn the number of Shares Outstanding.

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