Financial Terms / market capitalization

# What is Market Capitalization?

Market capitalization is a useful tool to measure a company's size, so you can make an informed decision when investing!

## Formula

``Market Capitalization = Number of Outstanding Shares x Market Value of One Share``

## How do I calculate the market capitalization?

```Market capitalization is an important measure of a company's size, and can be used to compare companies across industries. To calculate market capitalization, simply multiply the number of outstanding shares by the current market value of one share. This calculation can easily be done using tools such as  Sourcetable.
Formula: `Market Capitalization = Number of Outstanding Shares x Market Value of One Share````

## What is market capitalization?

`Market capitalization is the total dollar value of a company's outstanding shares.`

## How is market capitalization calculated?

`Market capitalization is calculated by multiplying the current market price of a company's shares by the total number of outstanding shares.`

## What is the formula for market capitalization?

`The formula for market capitalization is `Market Capitalization = Market Price x Number of Outstanding Shares`.`

## Key Points

How do I calculate market capitalization?
`Market Capitalization = Number of Outstanding Shares x Market Value of One Share`
Determining a Company's Size
Market capitalization is used to determine a company's size. It is calculated by multiplying the number of shares of a company's common stock outstanding by the current market price of each share.
Market Influence
The market capitalization of a company is an important indicator of its economic strength and influence in the industry. It is a factor that many investors take into account when evaluating a company's stock.
Rising or Falling Stock Prices
Market capitalization can also be used to identify companies with rising or falling stock prices. For example, if a company's stock price increases, its market capitalization will also increase. Conversely, if a company's stock price decreases, its market capitalization will also decrease.
Relative Size
Market capitalization can also be used to compare the relative size of different companies. A company with a higher market capitalization is generally considered to be larger than one with a lower market capitalization.