# Market Capitalization Calculator

## About Market Capitalization Calculator (Formula)

A Market Capitalization Calculator is a tool used in finance to determine the total value of a publicly traded company’s outstanding shares in the stock market. Market capitalization, also known as market cap, is a measure of the company’s size and is calculated by multiplying the current market price of one share by the total number of outstanding shares. This calculator helps investors and analysts assess the relative size of a company and its position in the stock market. The formula used to calculate market capitalization is:

Market Capitalization = Current Market Price per Share × Total Number of Outstanding Shares

Where:

• Market Capitalization represents the total value of all outstanding shares of a company in the stock market, typically measured in dollars (or other currency units).
• Current Market Price per Share is the current trading price of one share of the company’s stock in the stock market.
• Total Number of Outstanding Shares refers to the total number of shares of the company that are currently owned by investors and are available for trading.

Using the Market Capitalization Calculator involves these steps:

1. Input: Enter the current market price per share and the total number of outstanding shares of the company into the calculator.
2. Calculation: The calculator applies the formula to calculate the market capitalization.
3. Output: The calculator displays the calculated market capitalization of the company.

This tool is particularly useful for investors, financial analysts, and researchers who want to compare companies based on their market size and analyze their relative positions in the stock market.

For example, if a company’s stock is currently trading at \$50 per share, and there are 1 million outstanding shares, the Market Capitalization Calculator will provide you with the total market capitalization of the company.

In finance and investment analysis, market capitalization is a critical metric for evaluating the size and significance of a company in the stock market.