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What is market cap? Market capitalisation (market cap) is the total value of all a company's shares combined. It equals the share price multiplied by the total number of shares. Apple's market cap of approximately $3.1 trillion means all outstanding Apple shares are collectively worth $3.1 trillion โ making it the largest company in the world by this measure.
Market Cap = Current Share Price ร Total Shares Outstanding
Example: Apple share price $245, shares outstanding 15.3 billion โ Market cap = 245 ร 15.3 billion = $3.75 trillion.
| CATEGORY | MARKET CAP | CHARACTERISTICS | EXAMPLES |
|---|---|---|---|
| Mega-cap | $200B+ | Most stable, most liquid, lowest individual risk | AAPL, MSFT, NVDA, GOOGL |
| Large-cap | $10B-$200B | Established, generally stable, widely covered | PLTR, SOFI, NET, DKNG |
| Mid-cap | $2B-$10B | Growth potential, less stability than large-cap | Many sector-specific leaders |
| Small-cap | $300M-$2B | High growth potential, high volatility, less coverage | Emerging companies |
| Micro-cap | Below $300M | Speculative, limited liquidity, very high risk | Early-stage companies |
Market cap tells you how much the market currently thinks a company is worth โ not necessarily what it is fundamentally worth. Companies with higher market caps are generally more stable because they are harder to manipulate, more liquid (easier to buy and sell), and typically have more analyst coverage.
However, market cap does not directly tell you whether a company is over or undervalued โ that requires looking at earnings (P/E ratio), growth, and assets.
Educational purposes only. MarketMVP OVR scores, tiers, and athlete comparisons are proprietary educational tools โ not financial advice, investment ratings, or recommendations to buy or sell any security. Always conduct your own research. Full disclaimer