Investing Basics

What Is Market Capitalization?

Market capitalization, or market cap, is the total market value of a company’s outstanding shares, calculated by multiplying the current share price by the number of shares outstanding. It is commonly used to describe a company’s size and to group stocks into large-cap, mid-cap, and small-cap categories.

Formula

Market cap = share price × shares outstanding. A company with 100 million shares trading at 50 has a market cap of 5 billion.

Size Categories

Common, approximate cut-offs are large-cap above 10 billion, mid-cap from 2 to 10 billion, and small-cap below 2 billion, though definitions vary.

🧮 Calculate It Yourself

Put Market Capitalization into practice with these free calculators — no sign-up, nothing stored.

% Percentage Calculator Three calculators in one: percentage of a number, percentage of total, and percentage change. Calculate → 💹 Stock Profit Calculator Profit or loss on a stock trade after commissions, return percentage, and break-even price. Calculate →

🔗 Related Terms

Stock Earnings Per Share (EPS) Index Fund Blue-Chip Stock Stock Split

More Investing Basics Terms

📖 Browse all glossary terms or explore all free calculators.

Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.