Definition
Market Capitalization
Total market value of all outstanding shares of a company.
Market capitalization (market cap) is calculated by multiplying a company's total number of outstanding shares by its current share price. It represents the market's estimate of the total value of a company. Companies are often categorised as large-cap ($10B+), mid-cap ($2B–$10B), small-cap ($300M–$2B), and micro-cap (under $300M).
Frequently Asked Questions
What is the difference between market cap and revenue?
Revenue is the total income a company generates from its operations. Market cap is the market's valuation of the company's equity. A company can have high revenue but low market cap if its profitability or growth prospects are limited.
Which company has the highest market cap?
As of 2026, the companies with the largest market caps include Apple, Microsoft, NVIDIA, Amazon, and Alphabet. Caps change daily with stock prices.