Market Capitalization Calculator
What is market capitalization?
Market capitalization (market cap) is the total value of a company’s outstanding shares. In other words, it represents how the stock market currently values the company.
Market capitalization is a helpful metric for quickly estimating the company's size and assigning it to the proper category of largecap, midcap, or smallcap companies.
The size of market capitalization determines the risk assigned to the company. The bigger companies tend to have less volatile valuations. For example, blue chips have more stable stock prices than small companies.
How to calculate the market capitalization?
Market capitalization is a simple concept in order to calculate its value, you only need to multiply the number of outstanding shares by their current price.
Market capitalization formula
Market_Cap = SharePrice * NumberOfShares
Where:

SharePrice  the current price of a single share

NumberOfShares  the total number of outstanding shares
Example market share calculation
Let’s calculate the market cap of Tesla Motors (TSLA) for July 22nd, 2022.

The total number of outstanding Tesla shares is 1.04 billion.

The current price of a single $816.73

Now let’s substitute the data into the formula:
Market_Cap = SharePrice * NumberOfShares = $816.73 * 1,040,000,000 = $849,400,000,000
So the market cap of Tesla Motors on the 22nd of July 2022 was $849,4 billion. Not bad!
Other methods of company valuation
The market cap is a simple and easytocalculate metric, but there are other more advanced and more accurate methods of a company’s valuation.
One is the Discounted Cash Flow Calculator (DCF) method, and the other is EBITDA Multiple.
Authors
Created by Lucas Krysiak on 20220723 14:41:55  Last review by Mike Kozminsky on 20220915 14:09:31