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Rule #1 Investing

Market Cap Calculator

This calculator will determine a company's market capitalization.

What is Market Capitalization?

Market capitalization (commonly called market cap) is the total market value of all of a company's outstanding shares. Market cap is a reflection of what we would pay today to own a piece of the company.

But this price is not the true value of the business.

If we make market cap the only metric to determine whether or not we invest, we are letting the market price of the business tell us what the business is worth, instead of using all of the data available to a Rule #1 investor.

The current share price for the company

Total shares outstanding from the balance sheet

Market Capitalization

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How to Calculate Market Cap (Step-by-Step)

Market capitalization comes from one simple formula:

Market Cap = Share Price × Total Number of Outstanding Shares

Multiply the current share price by the total number of shares outstanding, and you have the market's current valuation of the entire company.

Where prompted, enter the following numbers into the calculator:

  • Share Price: The current share price for the company.
  • Total Number of Outstanding Shares: The total number of outstanding shares on the balance sheet for the company.

I've Done the First Two... Now It's Your Turn!

Company Dollars Per Share Number of Shares Market Cap Size
Apple (AAPL) $210.50 4,915,138,000 $990B Large
Alphabet, Inc (GOOG) $1,220.01 348,952,000 $425B Large

*Approximate figures shown for Apple and Alphabet — actual share prices and share counts change daily.

If you find that market capitalization is a valuable metric to understand and would like to learn more about it, download Understanding Market Capitalization.

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Understanding Market Capitalization

Learn more about how to evaluate a company's market capitalization.

Download Now