Market Capitalization Calculator
Print| Market Cap Category | - |
When evaluating the total size of a publicly traded corporation, looking at individual stock price per share is misleading; a stock trading at $500 per share may be worth significantly less in total than a stock trading at $20 per share with billions of shares outstanding. The definitive metric for measuring total equity size is Market Capitalization (Market Cap).
Our free Market Capitalization Calculator computes a company’s total equity valuation and automatically classifies the stock into its corresponding size category—from Micro-Cap to Mega-Cap.
How to Calculate Market Capitalization
Market capitalization is calculated by multiplying total outstanding common shares by the current market stock price.
The Market Capitalization Formula:
Market Capitalization = Total Common Shares Outstanding × Current Market Share Price
Step-by-Step Market Cap Calculation Example
Suppose a enterprise reports 100,000,000 total shares outstanding trading on the NASDAQ stock exchange at a current market price of $65.00 per share.
Let’s calculate the company’s total Market Capitalization:
Market Capitalization = 100,000,000 shares × $65.00 = $6,500,000,000 ($6.5 Billion)
| Market Cap Category | Valuation Threshold Range | Risk & Volatility Profile | Example Asset Characteristics |
|---|---|---|---|
| Mega-Cap | Over $200 Billion | Low Volatility / High Stability | Global tech leaders (Apple, Microsoft) |
| Large-Cap | $10 Billion to $200 Billion | Established / Moderate Growth | Blue-chip S&P 500 constituents |
| Mid-Cap (Calculated Example) | $2 Billion to $10 Billion ($6.5B) | Balanced Growth & Risk | Established growth & regional leaders |
| Small-Cap | $300 Million to $2 Billion | High Growth / High Volatility | Russell 2000 constituents |
| Micro-Cap | Under $300 Million | Speculative / High Risk | Early-stage & niche companies |
Frequently Asked Questions (FAQ)
What is Market Capitalization?
Market Capitalization (Market Cap) is the aggregate total dollar value of a company’s outstanding equity shares, calculated by multiplying total shares by current stock price.
How does Market Capitalization differ from Enterprise Value?
Market Capitalization measures equity value only (common stock). Enterprise Value (EV) measures the total operating value of the entire company by adding total debt obligations and subtracting cash reserves.
Why do stock splits not change a company’s Market Capitalization?
When a stock undergoes a split (e.g., a 2-for-1 stock split), total outstanding shares double while the share price is halved. Because (2 × Shares) × (0.5 × Price) = Original Market Cap, the company’s total valuation remains unchanged.