Rule #1 Investing

Market Cap Calculator

Understand the relationship between share price and shares outstanding to calculate market capitalization.

Market Capitalization

$0

What is Market Capitalization?

Market capitalization (market cap) represents the total market value of a company's outstanding shares. It's calculated by multiplying the current share price by the total number of outstanding shares.

While market cap tells us what the market is willing to pay for a company today, it's important to remember that price is not the same as value. As Rule #1 investors, we look for companies where the true value exceeds the market price.

Market Cap Classifications

Large Cap

$10 billion+

Mid Cap

$2 - $10 billion

Small Cap

Under $2 billion

Where to Find This Data

You can find the number of outstanding shares on a company's balance sheet or on financial websites like Yahoo Finance, Google Finance, or the company's investor relations page.

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