Market Capitalisation
Market Cap
Market capitalisation is the total market value of all of a company's shares. It is the money you would need to buy 100 percent of the company at today's share price.
Formula
Market Cap
Market Cap = Share Price × Number of Shares
Benchmark: A size gauge, not a valuation verdict
Reading the number
Market cap has two uses. The first is obvious: it tells you how big the company is, which decides whether it sits in the large cap, mid cap, or small cap bucket.
The second use is the intuitive filter. Ask yourself: "If I had this much money, would I buy this whole business?" Then compare what the same sum buys elsewhere. Your money is limited, so you are always choosing between companies, and often between industries. Comparing what roughly ₹5 lakh crore buys in soaps, in banking, and in IT services trains the capital allocation instinct that every later ratio depends on.
Indian example
Related ratios
Glossary terms
From the research
How The Valuation Node Approaches Research
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