What Is Market Capitalization?

Market capitalization is the market value of the issued equity of a firm. It is calculated by multiplying the number of shares in the market by the price per share. Market capitalization is typically used to assess the size of the firm in question, the rough categories are:

  • Small Cap - $2 billion or less
  • Mid Cap - $2-10 billion
  • Large Cap - $10 billion or more

As of 19th October 2011, the companies with the two largest market caps in the world are Apple Inc. (AAPL) and Exxon Mobil (XOM).

To learn more about this concept and become a master at valuation modeling, you should check out our Valuation Modeling Course. Learn more here.

Module 1: Introduction

Module 2: Valuation: The Big Picture

Module 3: Enterprise Value & Equity Value Practice

Module 4: Trading Comparables Introduction

Module 5: Trading Comps: The Setup

Module 6: Trading Comps: Spreading Nike (NKE)

Module 7: Trading Comps: Spreading Adidas (ADS.DE)

Module 8: Trading Comps: Spreading Lululemon (LULU)

Module 9: Trading Comps: Spreading Under Armour (UA)

Module 10: Trading Comps: Benchmarking and Outputs

Module 11: Precedent Transactions: Introduction

Module 12: Precedents: The Setup

Module 13: Spreading Tiffany & LVMH

Module 14: Spreading FitBit & Google

Module 15: Spreading Reebok & Adidas

Module 16: Spreading Jimmy Choo & Michael Kors

Module 17: Spreading Dickies & VF

Module 18: Valuation Wrap-Up

Module 19: Bonus: Non-GAAP Practice

Learn More Here

Related Terms

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