A-Z Popular Blog Encyclopedia Search »
Investing
 Advertisements
Related Guides
Investment Analysis

6 Types of Market Cap

 ,
Market cap, or market capitalization, is the value of a firm as calculated by its shares outstanding multiplied by its price. This is essential the market's valuation of a company at a point in time. The following are common levels of market cap.

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 as
market cap = # shares outstanding × price

Market 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

Investment Analysis

This is the complete list of articles we have written about investment analysis.
Channel Check
Corporate Actions
Cost Of Capital
Enterprise Value
Financial Analysis
Inherent Risk
Liquidity Risk
Net Present Value
Organic Growth
Smart Money
If you enjoyed this page, please consider bookmarking Simplicable.
 

Enterprise Value

A complete overview of enterprise value with examples.

Investment

A few articles about investing.

Calculated Risk Examples

The definition of calculated risk with examples.

Speculative Bubbles

The common types of speculative bubble.

Value Investing

A complete overview of value investing.

Wealth

The common types of wealth.

Insider Information

The definition of insider information with examples.

Corporate Actions

The definition of corporate action with examples.

Short Selling

The definition of short selling with examples.

Long Squeeze

The common types of long squeeze.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map