# Market Cap Calculator

Use the tool below to calculate the market cap for any company.

## What is the formula for market cap?

You can calculate market cap of any stock using the following formula:

``Market Cap = (Share Price) x (Total Number of Shares)``

Here is an example calculation for Microsoft, which has a market cap of \$1.76 trillion.

``1,763,119,725,726.72 = 7,457,889,792 x 236.41``

## What does market cap mean?

Market capitilization, or market cap, is the total value of a company. The higher a company’s market cap, the more valuable the company is. The largest companies by market cap are currently 1) Apple (\$2.42 trillion), 2) Saudi Aramco (\$1.99 trillion), and 3) Microsoft (\$1.77 trillion).

Since market capilization is influenced by share price, a company’s market cap increases when the public has a positive perception of a firm’s prospects. Conversely, market cap will decrease if there is bad news about the company that causes the share price to decrease. Market cap can also change if a company issues new shares or acquires another company.

Market caps fluctuate by the minute during trading hours as the share price changes.

## How can I determine the value of a private company?

Market cap is a valulation of the net worth of a company calculated using public information about the share price and total number of shares. Since private companies are not traded on open markets, it is not possible to get this information. You will need to conduct your own research to determine the value of private companies. Financial analysts often publish estimates for the largest private firms– and they often vary greatly!

We are always on the lookout for new IPOs and add new companies to the site as soon as they are listed.