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How to calculate Market capitalization

The Market capitalization formula, with plain worked examples you can check yourself.

Market capitalization = Price × Shares

Worked examples

Price = 20 · Shares = 400Market capitalization = 8,000
Price = 10 · Shares = 400Market capitalization = 4,000
Price = 90 · Shares = 500Market capitalization = 45,000

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Market Value.

Related terms

Market capitalizationAPIUnicornShareholderStock exchangeTicker symbol

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