Does market cap mean worth?

Key Takeaways. Market capitalization refers to how much a company is worth as determined by the stock market . It is defined as the total market value of all outstanding shares. To calculate a company’s market cap, multiply the number of outstanding shares by the current market value of one share.

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What should a company’s market cap be?

Market cap definitions can vary, so the following are general guidelines. Large-cap: Market value of $10 billion or more ; generally mature, well-known companies within established industries. … Small-cap: Market value of $3 billion or less; tend to be young companies that serve niche markets or emerging industries.

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