market cap


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market cap

(market CAPitalization) The sum derived from the current stock price per share times the total number of shares outstanding. Although the market cap of a company is an indication of the value of the company, it is only a temporary metric based on the current stock market. The true value of the company (its profits, product positioning, balance sheet, etc.) may not be reflected in the market cap. Of course, the perfect example occurred during the dot-com explosion of the late 1990s, when the market caps of many companies that never made a dime in profit rose to astronomical heights. Conversely, a company can be doing well, but still have a low market cap if its products and reputation have not caught the fancy of the masses.
References in periodicals archive ?
To no surprise, companies in the Online/Internet Services sector had the largest percentage of market cap improvement during the quarter ended July 30, showing a 46.
Table 18: The top alcoholic drinks producers, 2003-2004 total group sales, profit and market cap (US$m and % change)
MLP Market Cap Index provides a benchmark that is designed to track the performance of widely held master limited partnerships (MLPs).
These include market cap between $200 million and $1 billion, value traded in excess of $0.
20 per cent of total market cap of the BSE 500," said Thunuguntla.
At the end of 2007, Kuwaiti companies' market cap constituted 89.
Under the new rule that will take effect from the end of January through December, the TSE will lower the required market cap to 600 million yen.
Hunt, Dillard's and Acxiom, all multi-billion dollar market cap companies as well.
The measurement of market cap would be self-calibrating and based on a standardized methodology.
A hedge fund manager typically gets a 20 percent cut of the increase in the market cap of the fund's holdings.
The sharp rise seen in market cap of these stocks leading up to 2000 is a telltale sign that there was a heavier weighting in IT stocks, because this run coincided with Japan's mini IT bubble.