Market Capitalization Calculator
Calculate a company's market value using its current stock price and number of outstanding shares.
Input Values
Market Capitalization Formula
The market capitalization formula is:
Market Cap = Stock Price × Outstanding Shares
This calculation represents the total market value of a company's outstanding shares.
Real-World Examples
Example 1: Apple Inc. (AAPL)
Scenario: Calculate Apple's market cap as of July 2023
Stock Price: $193.97
Outstanding Shares: 15.55 billion
Calculation: $193.97 × 15,550,000,000
Result: $3.017 trillion
Example 2: Small-Cap Company
Scenario: Startup with 5 million shares @ $25
Stock Price: $25.00
Outstanding Shares: 5,000,000
Calculation: $25 × 5,000,000
Result: $125 million
Example 3: Stock Split Impact
Scenario: 2:1 stock split at $100 price
Pre-split: 1M shares @ $100 = $100M market cap
Post-split: 2M shares @ $50 = $100M market cap
Shows market cap remains unchanged by splits
Example 4: Tesla (TSLA) Volatility
Scenario: TSLA moves from $200 to $210
Shares: 3.17 billion
Change: $10 × 3.17B = $31.7B market cap increase
Example 5: Micro-Cap Company
Scenario: $0.50 stock with 10M shares
Stock Price: $0.50
Shares: 10,000,000
Market Cap: $5 million
Example 6: Berkshire Hathaway
Scenario: High-price, low shares
Price: $527,000
Shares: 1.47 million
Market Cap: $775 billion
Example 7: IPO Calculation
Scenario: Company goes public at $15/sh
Price: $15.00
Shares: 50,000,000
Market Cap: $750 million
Example 8: Stock Buyback Impact
Scenario: $1B buyback at $100/sh
Removes 10M shares
Market cap remains same (price adjusts)
Example 9: Crypto Market Cap
Scenario: Bitcoin at $30,000
Circulating Supply: 19.4M BTC
Market Cap: $582 billion
Example 10: Negative Equity
Scenario: Company with negative equity
Stock Price: $2.50
Shares: 100M
Market Cap: $250 million (still positive)
FAQs
1. What does market capitalization measure?
Market cap measures a company's total market value based on its current stock price and total outstanding shares.
2. How often should market cap be calculated?
It changes continuously with stock price movements during trading hours.
3. Difference between market cap and enterprise value?
Enterprise value includes debt and cash, while market cap only considers equity value.
4. How do stock splits affect market cap?
Splits don't change market cap - they adjust share price and count proportionally.
5. What's considered a large-cap company?
Typically companies with market caps over $10 billion (e.g., Apple, Microsoft).
6. Can market cap be negative?
No, since both stock price and share count are always positive numbers.
7. How does dilution affect market cap?
Issuing new shares increases share count but typically decreases price proportionally.
8. Why is market cap important?
It helps investors compare company sizes and categorize investment risk levels.
9. Limitations of market cap?
Doesn't consider debt, cash, or fundamental valuation metrics.
10. How to find outstanding shares?
Reported in company filings (10-Q, 10-K) and financial data platforms.
