What is Market Capitalization?
Market Cap is share price multiplied by shares outstanding. It's the simplest measure of company size. Common buckets: Mega-Cap (>$200B), Large-Cap ($10B–$200B), Mid-Cap ($2B–$10B), Small-Cap ($300M–$2B), Micro-Cap (<$300M). Size affects volatility, liquidity, and investor base.
Formula
Market Cap = Share Price × Shares Outstanding
How TopTier Strategy uses Market Capitalization
We use market cap to contextualize ratios — what's expensive for a small-cap may be cheap for a mega-cap, and vice versa.
Related Glossary Terms
Other concepts in the Other pillar.
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