Market capitalization values a company’s outstanding equity at the current share price.
Market capitalization values a company’s outstanding equity at the current share price.
| Input | What it means |
|---|---|
| Share Price | The stated purchase or selling amount, in the same currency as the related costs. |
| Number of Shares | The share count corresponding to the stated price or earnings period. |
2 million shares at 15 each give market capitalization of 30 million.
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.