Market Capitalization
Share price times shares outstanding - the equity value of a company.
What is Market Capitalization?
The market's price for the entire equity of a business. Defines the large-, mid-, and small-cap categories that structure most allocation frameworks.
Market Capitalization: a worked example
50 million shares at $40 is a $2 billion market cap - mid-cap territory.
More terms in Valuation & Analysis
Earnings Per Share (EPS)
Net income attributable to each share of common stock.
Price-to-Earnings (P/E) Ratio
Price per share divided by earnings per share.
Dividend Yield
Annual dividends per share divided by share price.
Payout Ratio
The share of earnings paid out as dividends.
Book Value
Assets minus liabilities - the accounting value of equity.
Free Cash Flow
Operating cash flow minus capital expenditures.
EBITDA
Earnings before interest, taxes, depreciation, and amortization.
Return on Equity (ROE)
Net income divided by shareholders' equity.