Trading

Market cap

Share price multiplied by shares outstanding under a common definition.

What it means

Market capitalization describes equity market value at a point in time. It changes with price and share count, and it differs from enterprise value.

Example

A company with 1 billion shares and a $50 share price has a $50 billion market cap.

What not to infer

Market cap is not revenue, profit, book value, or a full valuation conclusion.