Market Capitalization
How to measure a company's total value in the stock market.
Market capitalization (market cap) is the total dollar value of a company's outstanding shares. It is calculated by multiplying the current stock price by the total number of shares outstanding.
Market cap categories
- Mega-cap: $200B+ (Apple, Microsoft, NVIDIA)
- Large-cap: $10B–$200B
- Mid-cap: $2B–$10B
- Small-cap: $300M–$2B
- Micro-cap: Under $300M
Why market cap matters
Market cap tells you how much the market values the entire company. It helps you: - Compare companies of different sizes - Understand risk (larger companies tend to be less volatile) - Build a diversified portfolio across size categories
Market cap vs valuation
Importantly, market cap tells you the *price* the market assigns — not whether the company is *cheap* or *expensive*. A $100B company can be undervalued; a $1B company can be overvalued. To assess value, you need valuation ratios like P/E, P/S, and P/B, which MetricSide provides on every stock page.