Market capitalization, or market cap, also known as market value, is a measure of a company's overall size and worth on the open market. It is calculated by multiplying the current market price of a stock by the total number of shares outstanding.In essence, market cap reflects what investors believe a company is worth in the market, while book value of equity shows the value of the company as per its balance sheet.
Learn Market Capitalization (Market Cap) with interactive examples and practice exercises in our Balance Sheet module.
This interactive learning module helps you understand Market Capitalization (Market Cap) through hands-on practice and real-world examples.