What is Market Cap?

What is Market Cap? Market Cap is short for Market Capitalisation and can also be known as equity Value.

Market Cap is the market value of a publically listed company. It is the total value of the company’s outstanding shares.

Market Cap = Shares Outstanding x Share Price

You will often hear companies being categorised by their market cap, depending on the size.

Mega Cap> $200 billion
Large Cap$10 billion – $200 billion
Mid Cap£2 billion – $10 billion
Small Cap$300 million – $2 billion
Micro Cap$50 million – $300 million
Nano Cap< $50 million

Market cap differs from enterprise value as it only accounts for the value of equity, where as enterprise value considers total value, considering net debt (debt + cash).

Market Cap = Enterprise Value - Debt + Cash

Further Details & Company Data

For more detailed information, including training, templates and company figures, visit one of the below sites or software providers:

Site / SoftwareDescriptionLink
CFI – Corporate Finance InstituteTraining, detailed explanations & templatesCFI Website
FinboxDetailed company financials & modelsFinbox Website
TradingViewBasic company financials & chartsTradingView Financials
SharePadCompany financials, news, filters and portfolio managementSharePad Signup Page

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