Fundamentals & valuation
What is Market capitalisation?
Also called: Market cap, M-cap
Hinglish mein padhein: Market cap kya hota hai?
Market capitalisation is a company's total market value: share price multiplied by the number of shares outstanding.
SEBI classifies the top 100 listed companies by average market cap as large caps, ranks 101–250 as mid caps and the rest as small caps. AMFI publishes the lists every six months.
Market cap tells you size, not value. A large company can still be expensive or cheap relative to its earnings.
Example
A company with 100 crore shares trading at ₹250 has a market cap of ₹25,000 crore.
Related terms
- Large cap, mid cap and small capSEBI groups listed companies by market cap rank: the top 100 are large caps, 101–250 are mid caps and 251 onwards are small caps.
- Free floatFree float is the part of a company's shares available for public trading, excluding promoter and other locked-in holdings.
- P/E ratioThe price-to-earnings ratio divides the share price by earnings per share. It shows how many rupees investors pay for each rupee of annual profit.