Market capitalization refers to the value of a company's outstanding shares.

Market Capitalization

Market capitalization reflects the theoretical cost of buying all of a company's shares , but usually is not what the company could be purchased for in a normal merger transaction. To estimate what it would cost for an investor to buy a company outright, the enterprise value calculation is more appropriate.

Thus market capitalization is a better measure of size than worth. That is, market capitalization is not the same as market value , which can generally only be assigned when the company is actually sold. Our in-depth tools give millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions.

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