[{"data":1,"prerenderedAt":181},["ShallowReactive",2],{"term:market-capitalization":3},{"term":4,"related":172},{"id":5,"title":6,"body":7,"category":155,"description":156,"extension":157,"faq":158,"meta":159,"navigation":160,"path":161,"related":162,"seo":165,"stem":166,"takeaways":167,"__hash__":171},"terms\u002Fterms\u002Fmarket-capitalization.md","Market Capitalization",{"type":8,"value":9,"toc":148},"minimark",[10,15,19,22,26,141,145],[11,12,14],"h2",{"id":13},"understanding-market-capitalization","Understanding Market Capitalization",[16,17,18],"p",{},"Market cap is used to size companies: large-cap, mid-cap, and small-cap.",[16,20,21],{},"It reflects what the market thinks the equity is worth, not the company's book value.",[11,23,25],{"id":24},"formula","Formula",[27,28,31],"span",{"className":29},[30],"katex-display",[27,32,35,72],{"className":33},[34],"katex",[27,36,39],{"className":37},[38],"katex-mathml",[40,41,44],"math",{"xmlns":42,"display":43},"http:\u002F\u002Fwww.w3.org\u002F1998\u002FMath\u002FMathML","block",[45,46,47,67],"semantics",{},[48,49,50,54,58,61,64],"mrow",{},[51,52,53],"mtext",{},"Market cap",[55,56,57],"mo",{},"=",[51,59,60],{},"Share price",[55,62,63],{},"×",[51,65,66],{},"Shares outstanding",[68,69,71],"annotation",{"encoding":70},"application\u002Fx-tex","\\text{Market cap} = \\text{Share price} \\times \\text{Shares outstanding}",[27,73,77,106,129],{"className":74,"ariaHidden":76},[75],"katex-html","true",[27,78,81,86,94,99,103],{"className":79},[80],"base",[27,82],{"className":83,"style":85},[84],"strut","height:0.8889em;vertical-align:-0.1944em;",[27,87,91],{"className":88},[89,90],"mord","text",[27,92,53],{"className":93},[89],[27,95],{"className":96,"style":98},[97],"mspace","margin-right:0.2778em;",[27,100,57],{"className":101},[102],"mrel",[27,104],{"className":105,"style":98},[97],[27,107,109,112,118,122,126],{"className":108},[80],[27,110],{"className":111,"style":85},[84],[27,113,115],{"className":114},[89,90],[27,116,60],{"className":117},[89],[27,119],{"className":120,"style":121},[97],"margin-right:0.2222em;",[27,123,63],{"className":124},[125],"mbin",[27,127],{"className":128,"style":121},[97],[27,130,132,135],{"className":131},[80],[27,133],{"className":134,"style":85},[84],[27,136,138],{"className":137},[89,90],[27,139,66],{"className":140},[89],[11,142,144],{"id":143},"example","Example",[16,146,147],{},"100 million shares at $50 each give a market cap of $5 billion.",{"title":149,"searchDepth":150,"depth":150,"links":151},"",2,[152,153,154],{"id":13,"depth":150,"text":14},{"id":24,"depth":150,"text":25},{"id":143,"depth":150,"text":144},"investing","The total market value of a company's outstanding shares.","md",[],{},true,"\u002Fterms\u002Fmarket-capitalization",[163,164],"price-to-earnings-ratio","bull-market",{"title":6,"description":156},"terms\u002Fmarket-capitalization",[168,169,170],"Market cap equals share price times shares outstanding.","It groups companies as large-, mid-, or small-cap.","It values equity only, not debt.","nZuIM_1IDt5C1E02FDZqN4iQd2PUgfVROrErCl0lj5g",[173,177],{"title":174,"description":175,"path":176},"Bull Market","A period of rising prices, often defined as a 20% gain from a recent low.","\u002Fterms\u002Fbull-market",{"title":178,"description":179,"path":180},"Price-to-Earnings Ratio (P\u002FE)","A company's share price divided by its earnings per share.","\u002Fterms\u002Fprice-to-earnings-ratio",1793226379086]