Mega Cap
Firms with a market capitalization over $300 billion.Large Cap
Firms with a market capitalization over 10 billion. Most of the value of global stock markets is invested in large cap stocks. In many cases, people also refer to mega cap stocks as large cap.Mid Cap
A market capitalization between $2 and $10 billion.Small Cap
A market capitalization between $300 million and $2 billion.Micro Cap
A market capitalization between $50 and $300 million.Nano Cap
A market capitalization below $50 million. This represents a large part of the economy in many nations as small businesses that are privately owned often fall into this category.Formula
Market capitalization is calculated asmarket cap = # shares outstanding × priceMarket Cap vs Enterprise Value
Market cap isn't a good valuation metric because it doesn't reflect the full capital structure of a firm. For example, a 50 billion market cap for a large firm may seem like a great deal until you realize it has 500 billion in debt. Enterprise value is a more comprehensive metric that includes market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents.Notes
The ranges above have changed over time due to factors such as inflation and are likely to change in future.| Overview: Market Cap | ||
Type | ||
Definition | The value of a firm as calculated by its shares outstanding multiplied by its price. | |
Also Known As | Market Capitalization | |
Related Concepts | ||
