Valuation

Market Capitalization Calculator

Calculate market capitalization from share price and shares outstanding.

Aequimetra calculator

Enter your values

Valuation
Market Capitalization
Enter values and calculate to see an interpretation.
Share price
Shares outstanding
Value / 1M shares
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Understand this calculation

Market capitalization is the equity market value implied by the current share price and total shares outstanding.

Formula

Market Capitalization = Share Price × Shares Outstanding

Worked example

A $50 share price and 100M shares outstanding produce a market capitalization of $5.0B.

How to interpret the result

Market cap measures common equity value at the entered share price. It is different from enterprise value because it does not incorporate debt and cash.

Assumptions & limitations

Share counts can change because of dilution, buybacks and corporate actions. Use a consistent current or diluted share-count definition.

Practical context

When this calculator is useful

Market capitalization is useful for translating a share price and shares outstanding into the market value of a company’s common equity. It is a basic reference for comparing company size in public markets.

How investors commonly use it

Investors often use market cap to group companies by size, calculate valuation ratios and distinguish equity value from enterprise value before making capital-structure adjustments.

What this metric does not tell you

Market cap does not represent the value of the entire operating business because it excludes debt, cash and other claims. It also changes continuously with the share price and may differ depending on which share-count definition is used.

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