Valuation

What is Market Capitalization?

Market cap is the total market value of a company's outstanding shares. It determines whether a stock is classified as large-cap, mid-cap, or small-cap.

Formula

Market Cap = Current Share Price Γ— Total Shares Outstanding

How to Interpret

In US markets: Mega-cap (>$200B) are global stalwarts (Apple, Microsoft), Large-cap ($10B–$200B) are stable, Mid-cap ($2B–$10B) blend growth and stability, Small-cap ($300M–$2B) and Micro-cap (<$300M) are higher risk/reward. Or international markets like India: Large-cap >β‚Ή20,000 Cr, Mid-cap β‚Ή5,000–20,000 Cr, Small-cap <β‚Ή5,000 Cr.

Typical Ranges

US: Mega-cap >$200B, Large-cap $10B–$200B, Mid-cap $2B–$10B, Small-cap $300M–$2B, Micro-cap <$300M. India: Large >β‚Ή20,000 Cr, Mid β‚Ή5,000–20,000 Cr, Small <β‚Ή5,000 Cr.

Learn More in the Academy

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter US or Indian stocks by Market Capitalization.