Market cap

What the stock market says a whole company is worth: the share price times the number of shares. If the price falls 10%, the market cap falls 10% too.

When we say a drop “wiped out $17 billion in value”, we mean the market cap fell by that much.

Also called: market capitalization, market value.

Related terms

  • Valuation: How expensive a stock is compared with what the company earns or might earn. A common measure is the price-to-earnings (P/E) ratio: the share price divided by yearly earnings per share.

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