Market Capitalisation

What the whole company is priced at.

Market cap is the price tag the market puts on the whole company: what you'd pay, in theory, to buy every share at today's price. Market cap = Share price × Number of shares Shares at Rs 500, with 2 crore shares. Market cap = 500 × 2,00,00,000 = Rs 1,000 crore. It tells you the size of a company, not whether it's cheap or expensive. That's what ratios like P/E are for. Comparing company sizes Grouping large/mid/small A base for other ratios Says nothing about value alone Moves with price constantly Ignores debt (see enterprise value)

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: The Basics.