--- title: Market capitalization simply explained description: Calculate Market capitalization ✓ English ✓ Example ✓ Score ✓ Market capitalization ✓ Definition ✓ Screener ⇒ Read now! image: https://blog.stocksguide.com/hubfs/Marktkapitalisierung%20%F0%9F%87%BA%F0%9F%87%B8.jpg --- [![StocksGuideFianl](https://blog.stocksguide.com/hubfs/StocksGuideFianl.svg "StocksGuideFianl")](https://stocksguide.com/en) - [Portfolios](https://stocksguide.com/en/portfolios) - [Screener](https://stocksguide.com/en/screener) - [Charts](https://stocksguide.com/en/charts) - [Alerts](https://stocksguide.com/en/stock-metric-alerts) - Tools - Discover stocks - [Stock Screener](https://stocksguide.com/en/screener) - [Indices](https://stocksguide.com/en/indices) - [Sectors](https://stocksguide.com/en/sectors) - [Dividend-Topscorer](https://stocksguide.com/en/dividends-strategy/topscorer) - [Growth-Topscorer](https://stocksguide.com/en/high-growth-investing/topscorer) - [Levermann-Topscorer](https://stocksguide.com/en/levermann-strategy/topscorer) - Analyze stocks - [Charting](https://stocksguide.com/en/charts) - [Dividend Calender](https://stocksguide.com/en/dividends-calendar) - [Earnings Calender](https://stocksguide.com/en/earnings-calendar) - [Dividends-Strategy](https://stocksguide.com/en/dividends-strategy) - [Growth-Strategy](https://stocksguide.com/en/high-growth-investing/strategy) - [Levermann-Strategy](https://stocksguide.com/en/levermann-strategy) - Monitor stocks - [Dashboard](https://stocksguide.com/en) - [HGI Watchlist](https://stocksguide.com/en/high-growth-investing/high-growth-investing-watchlist) - [Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Notifications](https://stocksguide.com/en/users/edit#notifications) - [Hig-Tech-Wikifolio](https://stocksguide.com/en/high-growth-investing/high-tech-stock-picking-wikifolio) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Blog](https://blog.stocksguide.com) - [Portfolios](https://stocksguide.com/en/portfolios) - [Screener](https://stocksguide.com/en/screener) - [Charts](https://stocksguide.com/en/charts) - [Alerts](https://stocksguide.com/en/stock-metric-alerts) - Tools - Discover stocks - [Stock Screener](https://stocksguide.com/en/screener) - [Indices](https://stocksguide.com/en/indices) - [Sectors](https://stocksguide.com/en/sectors) - [Dividend-Topscorer](https://stocksguide.com/en/dividends-strategy/topscorer) - [Growth-Topscorer](https://stocksguide.com/en/high-growth-investing/topscorer) - [Levermann-Topscorer](https://stocksguide.com/en/levermann-strategy/topscorer) - Analyze stocks - [Charting](https://stocksguide.com/en/charts) - [Dividend Calender](https://stocksguide.com/en/dividends-calendar) - [Earnings Calender](https://stocksguide.com/en/earnings-calendar) - [Dividends-Strategy](https://stocksguide.com/en/dividends-strategy) - [Growth-Strategy](https://stocksguide.com/en/high-growth-investing/strategy) - [Levermann-Strategy](https://stocksguide.com/en/levermann-strategy) - Monitor stocks - [Dashboard](https://stocksguide.com/en) - [HGI Watchlist](https://stocksguide.com/en/high-growth-investing/high-growth-investing-watchlist) - [Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Notifications](https://stocksguide.com/en/users/edit#notifications) - [Hig-Tech-Wikifolio](https://stocksguide.com/en/high-growth-investing/high-tech-stock-picking-wikifolio) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Blog](https://blog.stocksguide.com) Search Search - [Contact Us](https://stocksguide.com/en/contacts/new) - [Contact Us](https://stocksguide.com/en/contacts/new) Search Search ![Market capitalization simply explained](https://blog.stocksguide.com/hubfs/Marktkapitalisierung%20%F0%9F%87%BA%F0%9F%87%B8.jpg) Aug 19, 2021 | [Knowledge](https://blog.stocksguide.com/topic/knowledge) # Market capitalization simply explained Market capitalization is a common indicator used to roughly classify the size of a company and compare it with other companies. We explain everything you need to know about market capitalization: What is market capitalization? How is it calculated? What does it mean? We also show you the largest companies... [Oscar Leistikow](https://blog.stocksguide.com/author/oscar-leistikow) Share - [mailto:?&subject=Market%20capitalization%20simply%20explained&body=Market%20capitalization%20simply%20explained%0A(https%3A%2F%2Fblog.stocksguide.com%2Fknowledge%2Fmarket-capitalization-simply-explained)](mailto:?&subject=Market%20capitalization%20simply%20explained&body=Market%20capitalization%20simply%20explained%0A(https%3A%2F%2Fblog.stocksguide.com%2Fknowledge%2Fmarket-capitalization-simply-explained)) - - - Table of contents 1. [What is market capitalization?](https://blog.stocksguide.com/knowledge/market-capitalization-simply-explained#What-is-market-capitalization) 2. [How is market capitalization calculated?](https://blog.stocksguide.com/knowledge/market-capitalization-simply-explained#How-is-market-capitalization-calculated) 3. [What does market capitalization tell us?](https://blog.stocksguide.com/knowledge/market-capitalization-simply-explained#What-does-the-market-capitalization-tell-us) 4. [Table of the world's largest companies by market capitalization](https://blog.stocksguide.com/knowledge/market-capitalization-simply-explained#Table-of-the-worlds-largest-companies-by-market) ## **What is market capitalization?** Market capitalization is a common indicator used to roughly classify the size of a company and compare it with other companies. A distinction is made between large, mid and small caps (“cap” is the abbreviation for capitalization). The distinction is usually made on the basis of market capitalization: large caps > € 5 billion, mid caps > € 2 billion, small caps < € 2 billion. Market capitalization is also referred to as the market capitalization of a company. The most important facts in brief - Common key figure for assessing the size of a company - A distinction is made between large, mid and small caps - Market capitalization is not the company value ## **How is market capitalization calculated?** Market capitalization is calculated by multiplying the share price by the number of shares issued. ### **Calculating market capitalization:** The calculation of Tesla 's market capitalization as of September 13, 2024 is shown as an illustration: ![Berechnung Mcap](https://blog.stocksguide.com/hs-fs/hubfs/Berechnung%20Mcap.jpg?width=1359&height=302&name=Berechnung%20Mcap.jpg) ## **What does the market capitalization tell us?** Market capitalization reflects the value that shareholders would be willing to pay for a company's equity. Market capitalization can fluctuate greatly depending on the volatility (price fluctuations) of the individual share and changes daily. Please note: Market capitalization does not represent the value that would have to be paid to buy the entire company, as a company's debt and liquid assets, for example, are not taken into account in market capitalization. The “Enterprise Value” represents this adjusted company value ## **Table of the world's largest companies by market capitalization** This table shows the companies with the highest revenue growth of the S&P 500. For a daily updated table, click [here](https://stocksguide.com/en/screener?metrics=market_cap_eur-greater_equal-1000)! Updated on: Wed, Aug 07 2024 | **Stock** | **Market Capitalization** | | --- | --- | | [Apple](https://stocksguide.com/en/stock/Apple-US0378331005)  | $3.19t | | [Microsoft](https://stocksguide.com/en/stock/Microsoft-US5949181045)  | $2.96t | | [NVIDIA](https://stocksguide.com/en/stock/NVIDIA-US67066G1040)  | $2.43t | | [Alphabet](https://stocksguide.com/en/stock/Alphabet-US02079K1079)  | $1.98t | | [Saudi Aramco](https://stocksguide.com/en/stock/Saudi-Aramco-SA14TG012N13) | $1.73t | | [Amazon.com](https://stocksguide.com/en/stock/Amazon-com-US0231351067)  | $1.71t | | [Meta Platforms (Facebook)](https://stocksguide.com/en/stock/Meta-Platforms-US30303M1027)  | $1.24t | | [Berkshire Hathaway](https://stocksguide.com/en/stock/Berkshire-Hathaway-US0846707026) | $920.31b | | [Taiwan Semiconductor Manufacturing Co.](https://stocksguide.com/en/stock/Taiwan-Semiconductor-Manufacturing-Co-US8740391003)  | $804.15b | | [Eli Lilly and Company](https://stocksguide.com/en/stock/Eli-Lilly-and-Company-US5324571083) | $733.85b |   [Knowledge](https://blog.stocksguide.com/tag/Knowledge) ![Oscar Leistikow](https://blog.stocksguide.com/hs-fs/hubfs/Oscar%20Leistikow.jpg?width=70&name=Oscar%20Leistikow.jpg) ### Written By: Oscar Leistikow Oscar Leistikow holds a Master's degree in Controlling and is at home in the world of numbers thanks to his many years of professional experience in the finance department of a DAX-listed company. He is fascinated by the capital markets and is an enthusiastic private investor himself. His aim is to pass on his knowledge of shares and the stock market and to develop StocksGuide into a leading tool for private investors. ## You May Also Like ### [![Market capitalization simply explained](https://blog.stocksguide.com/hubfs/Free%20Cashflow%20Marge%20%5BEN%5D-1.jpg) *Apr 14, 2025 | Knowledge* Free Cashflow Margin simply explained](https://blog.stocksguide.com/knowledge/free-cashflow-margin-simply-explained) ### [![Market capitalization simply explained](https://blog.stocksguide.com/hubfs/Enterprise%20Value%20US.jpg) *Apr 23, 2025 | Knowledge* Enterprise Value simply explained](https://blog.stocksguide.com/knowledge/enterprise-value-simply-explained) ### [![Market capitalization simply explained](https://blog.stocksguide.com/hubfs/Umsatz%20%F0%9F%87%BA%F0%9F%87%B8.jpg) *Sep 01, 2021 | Knowledge* Revenue simply explained](https://blog.stocksguide.com/knowledge/revenue-simply-explained) [View more blog posts](https://www.example.com) [![StocksGuideFianl](https://blog.stocksguide.com/hubfs/StocksGuideFianl.svg "StocksGuideFianl")](https://stocksguide.com/en) Binzallee 30, Zürich 8055 © 2024 aktien.guide AG - StocksGuide - [Features](https://stocksguide.com/en/product) - [Plans](https://stocksguide.com/en/premium) - Company - [About](https://stocksguide.com/en/about-us) - [Contact us](https://stocksguide.com/en/contacts/new) - [Privacy Policy](https://stocksguide.com/en/privacy-policy) - [Imprint](https://stocksguide.com/en/imprint) - Discover Stocks - [Blog](https://blog.stocksguide.com) - [Earnings Calendar](https://stocksguide.com/en/earnings-calendar) - [Dividend Calendar](https://stocksguide.com/en/dividends-calendar) - [Stock Screener](https://stocksguide.com/en/screener) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Dividend Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Stocks](https://stocksguide.com/en/stocks) - [Glossary](https://lp.stocksguide.com/glossary) **Disclaimer** aktien.guide AG assumes no liability for the information presented, its accuracy and completeness. 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