diff --git "a/26a4b977-48e9-4db5-8de6-886dc9f9ef17.json" "b/26a4b977-48e9-4db5-8de6-886dc9f9ef17.json" new file mode 100644--- /dev/null +++ "b/26a4b977-48e9-4db5-8de6-886dc9f9ef17.json" @@ -0,0 +1,40 @@ +{ + "interaction_id": "26a4b977-48e9-4db5-8de6-886dc9f9ef17", + "search_results": [ + { + "page_name": "Market Capitalization: What It Is and Why It Matters - NerdWallet", + "page_url": "https://www.nerdwallet.com/article/investing/what-is-market-cap", + "page_snippet": "And while our site doesn\u2019t feature ... straightforward \u2014 and free. So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners. Market capitalization \u2014 or market ...And while our site doesn\u2019t feature every company or financial product available on the market, we\u2019re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward \u2014 and free. So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners. Market capitalization \u2014 or market cap \u2014 measures a company\u2019s value based on the number of stock shares it has issued and the price at which investors are willing to buy them. Market capitalization \u2014 or market cap \u2014 measures a company\u2019s value based on the number of stock shares it has issued and the price at which investors are willing to buy them. ... Chris Davis is an assigning editor on the investing team. As a writer, he covered the stock market, investing strategies and investment accounts, and as a spokesperson, he appeared on NBC Bay Area and was quoted in Forbes, Apartment Therapy, Martha Stewart and Lifewire, among others. We believe everyone should be able to make financial decisions with confidence. And while our site doesn\u2019t feature every company or financial product available on the market, we\u2019re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward \u2014 and free. As a writer, he covered the stock market, investing strategies and investment accounts, and as a spokesperson, he appeared on NBC Bay Area and was quoted in Forbes, Apartment Therapy, Martha Stewart and Lifewire, among others. His work has appeared in The Associated Press, The Washington Post, MSN, Yahoo Finance, MarketWatch, Newsday and TheStreet. Previously, he was the content manager for the luxury property management service InvitedHome and the section editor for the legal and finance desk of international marketing agency Brafton.", + "page_result": "\n\n \n \nMarket Capitalization: What It Is and Why It Matters - NerdWallet\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n \n
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Market Capitalization: What It Is and Why It Matters

Market capitalization \u2014 or market cap \u2014 measures a company\u2019s value based on the number of stock shares it has issued and the price at which investors are willing to buy them.
\"Chris
By Chris Davis\u202f\u00a0
Updated
Edited by\u00a0Arielle O'Shea \u202f
\"Market

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The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Nerdy takeaways
  • Market capitalization, or market cap, is the total value of a company\u2019s shares of stock.

  • Market cap allows investors to evaluate a company based on how valuable the public perceives it to be.

  • Investing across market caps can help create a diversified portfolio.

MORE LIKE THISInvestingStocks

What is market capitalization?

Market capitalization, or market cap, is the total value of a company\u2019s shares of stock. If a company has issued 10 million shares, and its share price is $100, its market cap is $1 billion.

Market cap is calculated by multiplying the number of stock shares outstanding by the current share price. Shares outstanding includes all shares \u2014 those available to the public as well as restricted shares available to and held by specific groups.

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What does market cap mean?

Market cap is a metric that makes it easier to understand a company's financial scope. It allows investors to size up a company based on how valuable the public perceives it to be. The higher the value, the "bigger" the company. The size and value of a company can inform the level of risk you might expect when investing in its stock, as well as how much your investment might return over time.

Public companies are grouped by size based on their market capitalizations:

  • Large-cap ($10 billion or more).

  • Mid-cap ($2 billion to $10 billion).

  • Small-cap ($250 million to $2 billion).

Categorizing companies this way helps investors create a balanced portfolio that's optimized for long-term growth.

Below is a deeper dive into the major market-cap segments, but it\u2019s important to remember the threshold isn\u2019t clearly defined; the higher-value components of one segment can mix in with the lower-value segments of the next. Indexes and fund managers may have different definitions of market cap or use wider or narrower criteria. A company\u2019s share price can also fluctuate enough to move it into a higher or lower market-cap category.

Market cap segments

Large-cap companies: $10 billion or more

Large-cap companies tend to be those that are well-established and profitable, and are often household names, including:

  • Microsoft Corp.

  • Johnson & Johnson.

  • JPMorgan Chase & Co.

  • Exxon Mobil.

  • General Mills.

  • AutoZone.

  • Etsy.

Because they\u2019re so established, large-cap companies are generally more stable. They\u2019re reliable in terms of dividend payouts and typically don\u2019t grab headlines the way some flashier stocks might. But this understated nature is actually what makes them attractive to investors \u2014\u00a0large-cap stocks are boring, which means they don't often fluctuate as wildly as small- or mid-cap stocks.

There are several mutual funds that track large-cap stocks, including iShares S&P 100 ETF, Vanguard Value ETF and Schwab U.S. Large-Cap Value ETF. Many brokerages offer tools to screen and discover more funds that track companies with specific market capitalizations.

Mid-cap companies: $2 billion to $10 billion

While large-cap companies have already seen rapid growth, mid-cap companies are often in the midst of it. And with that growth comes the opportunity for higher, faster gains but also the potential for more drastic downturns. Mid-cap companies are often household names, too, but typically aren\u2019t national \u2014 or international \u2014 behemoths like the companies above. A few mid-cap stocks include:

  • Boston Beer Company (maker of Samuel Adams).

  • Cracker Barrel.

  • Wyndham Hotels and Resorts.

  • Dick\u2019s Sporting Goods.

  • Shutterstock.

  • Asana.

Small-cap companies: $250 million to $2 billion

Small-cap stocks are often young companies with the potential for high growth. These stocks may have the possibility of high returns (that small-cap could indeed grow to be a mid- or large-cap), but they also come with the possibility of significant losses.

Small-cap companies typically have only a few revenue streams, depend on overall U.S. economic growth and can feel the effects of taxes and regulations more profoundly than established businesses. If large-caps are the big cruise liners that can withstand the stormiest seas, small-caps are the sailboats that can be rocked by a single wave.

Still, the opportunity for growth they present can benefit an investor\u2019s portfolio, provided the potential downside is buoyed by the relative stability of large-cap stocks. Examples of small-cap stocks include:

  • Bed, Bath & Beyond.

  • GoPro.

  • Abercrombie & Fitch.

The Russell 2000 Index tracks small-cap companies including all of the above. There are several funds that track the Russell 2000, such as iShares Russell 2000 ETF and Vanguard Russell 2000 ETF.

\u00bb What's a small-cap ETF?

Micro- and mega-cap companies

There are two other market-cap categories, generally referred to as micro-cap (below $250 million) and mega-cap (the largest companies on the stock market, some of which overlap with large-cap).

Micro-cap stocks are considered some of the riskiest investments. Many have virtually zero track record, and it\u2019s possible they don\u2019t even have any assets, operations or revenue to report. Mega-caps, meanwhile, represent the most established companies that often have large cash reserves that may help them weather economic downturns.

How to incorporate market cap in your portfolio

When it comes to balancing your portfolio between companies with various market caps, generally, the longer the investment horizon you have, the riskier your allocation might be \u2014 a longer timeline means more opportunity for your portfolio to recover from volatility. Long-term investors \u2014 for example, those saving for retirement that's decades away \u2014 could benefit from the potential growth of small- and mid-cap companies and still have time to weather unexpected downturns.

Investors who don\u2019t want to take as much risk may want to root their portfolio in less-volatile large- and mega-caps, with a lower allocation of small- and mid-caps.

Often, market-cap data is also used to manage mutual funds. These funds can hold stock in dozens or even hundreds of companies, which allows investors to buy many stocks in a single transaction. Mutual funds often invest by category, so investors can buy small-cap or large-cap funds.

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Market capitalization vs. float-adjusted market cap

Unlike market cap, float-adjusted market cap (sometimes called free-float market cap) is calculated using only shares that are available to the general public, excluding locked-in shares, such as those held by institutions and government agencies.

Many major stock indexes like the S&P 500 and the Dow Jones Industrial Average use float-adjusted market cap, as do many index funds and exchange-traded funds. Float-adjusted market cap is meant to give an even more accurate picture of how the market views and values a company\u2019s stock. Explore the specifics of the S&P 500 to learn more about this.

Market capitalization vs. enterprise value

There\u2019s one final distinction to understand: Market capitalization isn't the same as a company\u2019s enterprise value. While market cap measures the value of a company\u2019s equity, enterprise value measures the total value of the business, including its debts, assets and cash. Enterprise value is more complicated to calculate, but it also provides an extremely clear picture of what a company is worth.

Enterprise value is mostly used to determine the price of a company if it were to be acquired outright. However, experienced investors can use enterprise value alongside other performance data to determine whether a stock price is currently under- or overvalued relative to similar companies.

\u00bb Want to learn more? Read about how to start investing in the stock market

Frequently asked questions
What is a good market cap?

This is relative: A "good" market cap will align with your goals for your portfolio. Large-cap companies tend to be more stable and carry less risk than small-cap companies. And while small-cap companies may carry more risk, they can offer big rewards if they experience significant growth.

What can market cap tell you?

A company's market cap can tell you how much the larger stock market has determined that company is worth. The investing community uses market cap to get an idea of a company's size. Market cap can also give you an idea of how stable or risky a company is.

What is a good market cap?

This is relative: A "good" market cap will align with your goals for your portfolio. Large-cap companies tend to be more stable and carry less risk than small-cap companies. And while small-cap companies may carry more risk, they can offer big rewards if they experience significant growth.

What can market cap tell you?

A company's market cap can tell you how much the larger stock market has determined that company is worth. The investing community uses market cap to get an idea of a company's size. Market cap can also give you an idea of how stable or risky a company is.

Neither the author nor editor held positions in the aforementioned investments at the time of publication.
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\n\ncompanies: 8,183    \ntotal market cap: $101.365 T\n\n\n
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Sitio Royalties
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STR
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Rank
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Marketcap
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Change (1 year)
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Revenue for Sitio Royalties (STR)

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Revenue in 2023 (TTM): $0.54 B

\n

\nAccording to Sitio Royalties's latest financial reports the company's current revenue (TTM) is $0.54 B.\nIn 2022 the company made a revenue of $0.36 B.The revenue is the total amount of income that a company generates by the sale of goods or services. Unlike with the earnings no expenses are subtracted.\n

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Revenue history for Sitio Royalties from 2022 to 2023

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Annual revenue

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YearRevenueChange
2023 (TTM)$0.54 B47.17%
2022$0.36 B
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What is the market capitalization of a company?

\n

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
\nIn most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

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DISCLAIMER

\n

\nCompaniesMarketCap is receiving financial compensation for Delta App installs.
\nCompaniesMarketCap is not associated in any way with CoinMarketCap.com
\nStock prices are delayed, the delay can range from a few minutes to several hours.
\nCompany logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

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Contact

\nFor inquiries or if you want to report a problem write to helnospamlo@8market(nospam)cap.com\n
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\n© 2024 CompaniesMarketcap.com\n

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\n\n\n\n\n", + "page_last_modified": "" + }, + { + "page_name": "Market Capitalization: What It Is, Formula for Calculating It", + "page_url": "https://www.investopedia.com/investing/market-capitalization-defined/", + "page_snippet": "She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands. ... Market capitalization, or "market cap", is the aggregate market value of a company represented in a dollar amount.For instance, Microsoft with a stock price of around $300 per share had a market cap of $2,3 trillion as of Q2 2022, while Berkshire Hathaway (BRK.A), with a much higher stock price of more than $50,000 per share, had a lower market cap of $761 billion. Comparing the two companies by solely looking at their stock prices would not give a true representation of their actual relative values. With billions of dollars worth of valuation, a large-cap company may have more room to invest a few hundred millions in a new stream of business and may not take a big hit if the venture fails. Market capitalization, or \"market cap\" is the aggregate market value of a company represented in dollar amount. Market capitalization, or \"market cap\", is the aggregate market value of a company represented in a dollar amount. Since it represents the \u201cmarket\u201d value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares. They may perceive a higher stock price as a measure of a company\u2019s stability or a lower price as an investment available at a bargain. Stock price alone does not represent a company's actual worth. Market capitalization is the correct measure to look at, as it represents the true value as perceived by the overall market.", + "page_result": "\n\t\t\t\t\n\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t \n \n \n\n\t\t\t\t\t\n\t\t\t\t\t\n\n\n\n\n\n\n\n\nMarket Capitalization: What It Is, Formula for Calculating It\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\n\t\t\n\n\n\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n\n\n\n\n
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    \nWhat Is Market Capitalization?\n
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    \nUnderstanding Market Cap\n
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    \nTypes\n
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    \nImportance of Market Cap\n
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\nMarket Capitalization: What It Is, Formula for Calculating It

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\nBy\nShobhit Seth\n
\n
Updated April 07, 2022
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\n\n\n\nReviewed by\n
Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT).

\" tabindex=\"0\" data-inline-tooltip=\"true\">\nGordon Scott\n
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Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT).

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What Is Market Capitalization?

\n

\nMarket capitalization, or \"market cap\", is the aggregate market value of a company represented in a dollar amount. Since it represents the \u201cmarket\u201d value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares.\n

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\nMarket cap is also used to compare and categorize the size of companies among investors and analysts.\n

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\nKey Takeaways

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  • Market capitalization is the total dollar value of all outstanding shares of a company at the current market price.
  • Market cap is used to size up corporations and understand their aggregate market value.
  • Companies may be categorized as large-, mid-, or small-cap depending on their market capitalization.
  • Blue-chip companies are often large- or mega-cap stocks, while the very smallest are referred to as micro-caps.
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Understanding Market Capitalization

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\nMarket cap is calculated by multiplying a company's outstanding shares by the current market price of one share. Since a company has a given number of outstanding shares, multiplying X with the per-share price represents the total dollar value of the company.\n

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\nOutstanding shares are the total amount of shares\u00a0currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company\u2019s officers and insiders.\n

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Formula and Calculation

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\nThe formula for market cap is:
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\n\n\n\n\n\nMarket Cap\n\n\n=\n\n\nPrice Per Share\n\n\n\u00d7\n\n\nShares Outstanding\n\n\n\n\\text{Market Cap} = \\text{Price Per Share} \\times \\text{Shares Outstanding}\n\n\nMarket Cap=Price Per Share\u00d7Shares Outstanding\n

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\nFor example, if ABC Corp. trades at $30 per share and had one million outstanding shares, its market capitalization would be ($30 x 1 million shares) = $30 million.\n

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\nSince the market price of shares of a publicly-listed company keeps changing with each passing second, the market cap also fluctuates accordingly. The number of outstanding shares can also change over time.\n

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\nNote that changes to the number of outstanding shares are infrequent, and the figure changes only when the company undertakes certain corporate actions, such as issuing additional shares through a secondary offering, exercising employee stock options (ESO), issuing/redeeming other financial instruments, or buying back its shares under a share repurchase program.\n

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\nEssentially, the changes in market cap are largely attributed to the share price changes, though investors should keep an eye on corporate-level developments that may change the number of outstanding shares once in a while.\n

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Types of Market Capitalization

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\nSince capitalization represents a dollar value that can vary widely, different buckets and associated nomenclatures exist for categorizing the different market cap ranges. Below are the commonly used standards for each capitalization.\n

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Mega Cap

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\nMega-cap companies are those with a market cap of $200 billion or higher. They are the largest publicly traded companies by market value, and typically represent the leaders of a particular industry sector or market. A limited number of companies qualify for this category.\n

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\nFor example, as of Q2 2022, technology company Apple (AAPL) has a market cap of $2.9 trillion, making it the most valuable company in the world; while online retailer Amazon.com (AMZN) came in next at $1.6 trillion.\n

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Large Cap

\n

\nCompanies that are considered large-cap have a market cap between $10 billion to $200 billion. For example, in Q2 2022, International Business Machines Corp. (IBM) and General Electric (GE) are large-cap stocks with market caps of $116 billion and $99 billion, respectively.\n

\n
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\nBoth mega and large-cap stocks are referred to as\u00a0blue chips and are considered to be relatively stable and secure. However, there is no guarantee of these companies maintaining their stable valuations as all businesses are subject to market risks.\n

\n
\n

Mid Cap

\n

\nMid-cap stocks range from $2 billion to $10 billion in market cap, and this group of companies is considered to be more volatile than the large-cap and mega-cap companies. Growth stocks represent a significant portion of the mid-caps.\n

\n
\n

\nSome of the companies may or may not be industry leaders, but they may be on their way to becoming one. First Solar (FSLR), is a mid-cap leader in the solar power field, with a market cap of around $8 billion as of Q2 2022.\n

\n
\n

Small Cap

\n

\nSmall-cap companies have a market cap between $300 million to $2 billion. While the bulk of this category is comprised of relatively young companies that may have promising growth potential, a few established old businesses which may have lost value in recent times for a variety of reasons also figure in the list.\n

\n
\n

\nOne example is Bed Bath & Beyond Inc. (BBBY) which has a market cap of $2 billion as of Q2 2022, putting it right on the high-end of small cap stocks. Track records of such companies aren\u2019t as long as those of the mid-to-mega-caps, but they also present the possibility of greater capital appreciation.\n

\n
\n

Micro Cap

\n

\nCompanies that are considered micro-cap consist mostly of penny stocks\u2014this category denotes companies with market capitalizations between $50 million to $300 million. For instance, a lesser-known pharma company with no marketable product and working on developing a drug for an incurable disease, or a five-person company working on artificial intelligence (AI)-powered robotics technology may be listed with a small valuation and limited trading activity.\n

\n
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\nWhile the upward potential of such companies is high if they succeed, the downside potential is equally worse if they completely fail. Investments in such companies may not be for the faint-hearted and require more due diligence.\n

\n
\n

Nano Cap

\n

\nNano caps are another high-risk, high-reward layer beyond the micro-caps. Nano-cap companies have market caps below $50 million. These companies are considered to be the riskiest, and the potential for gain varies widely. These stocks typically trade on the pink sheets or Over-the-Counter Bulletin Board (OTCBB).\n

\n
\n

\nHistorical analysis reveals that mega- and large-caps often experience slower growth with lower risk, while small-caps have higher growth potential but come with higher risk. It is common to see companies making transitions from one category to the other depending upon the change in their market cap valuations regularly. Along with companies, other popular investments like mutual funds and exchange-traded funds (ETFs) are also categorized as small-cap, mid-cap, or large-cap. In the case of funds, the terms represent the types of stocks in which the fund primarily invests.\n

\n
\n

Importance of Market Capitalization

\n

\nSome traders and investors, mostly novices, can mistake a stock's price to be an accurate representation of that company\u2019s worth, health, and/or stability. They may perceive a higher stock price as a measure of a company\u2019s stability or a lower price as an investment available at a bargain. Stock price alone does not represent a company's actual worth. Market capitalization is the correct measure to look at, as it represents the true value as perceived by the overall market.\n

\n
\n

\nFor instance, Microsoft with a stock price of around $300 per share had a market cap of $2,3 trillion as of Q2 2022, while Berkshire Hathaway (BRK.A), with a much higher stock price of more than $50,000 per share, had a lower market cap of $761 billion. Comparing the two companies by solely looking at their stock prices would not give a true representation of their actual relative values.\n

\n
\n

\nWith billions of dollars worth of valuation, a large-cap company may have more room to invest a few hundred millions in a new stream of business and may not take a big hit if the venture fails. However, a mid-cap or micro-cap company making a similar value investment may be susceptible to big blows if their venture fails as they don\u2019t have that bigger cushion to absorb the failure. If the venture succeeds for large-cap companies, it may appear small in their profit numbers. But if the company scales up with its success, it can lead to profits of larger magnitudes. On the other hand, the success of such ventures for a mid-cap company can bolster its valuations to significant heights.\n

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\n
\n

A high stock price in and of itself does not always indicate a healthy or growing company. It can still have a relatively small market cap!

\n
\n
\n

Special Considerations

\n

\nValuations of mid-cap or small-cap companies often take a hit when there are reports of a large-cap company encroaching into their space of products or services. For instance, the entry of Amazon into cloud hosting services under the Amazon Web Services (AWS) umbrella has been posing a big threat to smaller companies operating in the niche space.\n

\n
\n

\nGenerally, investments in mega-cap or large-cap stocks are considered more conservative with less volatility than investments in small-cap stocks. Though mid and small-cap stocks offer high return potential to risk-taking investors, the relatively limited resources at the disposal of such companies make their stocks more susceptible to competition, uncertainties, and business or economic downturn.\n

\n
\n

\nThe different measurement of Market Cap values also form the basis to launch a variety of market indexes. For example, the benchmark equity index, the S&P 500, includes the top 500 U.S. companies which are weighted based on their market cap value, while the FTSE 100 index includes the top 100 companies listed on the London Stock Exchange with the highest market capitalization. Both indexes use the Float-Adjusted Market Cap Calculation.\n

\n
\n

\nSuch indexes not only represent the overall market developments and sentiments, but are also used as benchmarks to track the performance of various funds, portfolios, and individual investments.\n

\n
\n
\n\n

Why Are Small-Cap Stocks Often More Volatile?

\n

Small-cap stocks have relatively lower market values because these tend to be younger growth companies. Because of their growth orientation, they may be riskier since they spend their revenues on growth and expansion. Small-cap stocks are therefore often more volatile than those of larger companies. Generally, large-cap stocks experience slower growth and are more likely to pay dividends than faster-growing, small- or mid-cap stocks.

\n
\n
\n
\n\n

What Is a Market Capitalization-Weighted Index?

\n

Many stock indexes, such as the S&P 500, are weighted by market cap. This means that stocks with larger market capitalizations make up comparatively more of the index.

\n
\n
\n
\n\n

How Do Stock Splits Affect Market Cap?

\n

When a company undergoes a stock split, it increases the number of shares outstanding while reducing the price of each share by a similar proportion. For instance, in a 2:1 stock split, there will be twice as many shares, but at half the pre-split price. As a result, splits do not inherently influence market cap.

\n
\n
\n

The Bottom Line

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\nAn understanding of the market cap concept is important for not only the individual stock investor but also\u00a0investors\u00a0of various funds. Market caps can help investors know where they are putting their hard-earned money.\n

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\nInvestopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our\neditorial policy.\n
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  1. Yahoo Finance. "Apple, Inc."

  2. \n
  3. Yahoo Finance. "Amazon"

  4. \n
  5. Yahoo Finance. "International Business Machines Corporation (IBM)."

  6. \n
  7. Yahoo Finance. "General Electric."

  8. \n
  9. Yahoo Finance. "First Solar."

  10. \n
  11. Yahoo Finance. "Bed Bath & Beyond Inc. (BBBY)."

  12. \n
  13. U.S. Securities and Exchange Commission. "Investor Bulletin: Microcap Stock Basics (Part 1 of 3: General Information)."

  14. \n
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\nRelated Terms
\n
\n
\nWhat Is a Large Cap (Big Cap) Stock? Definition and How to Invest\n
\nLarge cap (big cap) refers to a company with a market capitalization value of more than $10 billion.
\nmore\n
\n
\n
\n
\nMid-Cap: Definition, Other Sizes, Valuation Limits, and Example\n
\nMid-cap is the term given to companies with a market capitalization\u2014or market value\u2014between $2 and $10 billion.
\nmore\n
\n
\n
\n
\nMicro-Cap: Definition in Stock Investing, Risks Vs. Larger Caps\n
\nA micro-cap is a small company that has a market capitalization between $50 million and $300 million and is considered riskier than a large-cap stock.
\nmore\n
\n
\n
\n
\nMarket Capitalization: How Is It Calculated and What Does It Tell Investors?\n
\nMarket capitalization is the total dollar market value of all of a company's outstanding shares.
\nmore\n
\n
\n
\n
\nMid-Cap Value Stock: What It is, How it Works, Example\n
\nIn the stock markets, a mid-cap value stock is a moderate-sized company that is considered a good pick for value investors.
\nmore\n
\n
\n
\n
\nWhat Are Small-Cap Stocks, and Are They a Good Investment?\n
\nA small-cap stock has a total share value of $300 million to $2 billion, although the precise figures used vary among brokerages.
\nmore\n
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\t\t\n\n\t\t\n", + "page_last_modified": "" + }, + { + "page_name": "Sitio Royalties (STR) - Market capitalization", + "page_url": "https://companiesmarketcap.com/sitio-royalties/marketcap/", + "page_snippet": "As of January 2024 Sitio Royalties has a market cap of $3.34 Billion. This makes Sitio Royalties the world's 3183th most valuable company according to our data.As of January 2024 Sitio Royalties has a market cap of $3.34 Billion. This makes Sitio Royalties the world's 3183th most valuable company by market cap according to our data. The market capitalization, commonly called market cap, is the total market value of a publicly traded company's outstanding shares and is commonly used to measure how much a company is worth. On Jan 18th, 2024 the market cap of Sitio Royalties was reported to be: ... The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company. In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares. The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company. In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares. CompaniesMarketCap is receiving financial compensation for Delta App installs. CompaniesMarketCap is not associated in any way with CoinMarketCap.com Stock prices are delayed, the delay can range from a few minutes to several hours. Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares. CompaniesMarketCap is receiving financial compensation for Delta App installs. CompaniesMarketCap is not associated in any way with CoinMarketCap.com Stock prices are delayed, the delay can range from a few minutes to several hours. Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.", + "page_result": "\n\n\nSitio Royalties (STR) - Market capitalization\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
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\n\ncompanies: 8,183    \ntotal market cap: $101.365 T\n\n\n
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\n\"Sitio
\n
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Sitio Royalties
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STR
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#3202
Rank
\n
$3.45 B
Marketcap
\n\n
\n
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$21.98
Share price
\n
0.26%
Change (1 day)
\n
-6.80%
Change (1 year)
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\n\n
\n

Market capitalization of Sitio Royalties (STR)

\n

Market cap: $3.45 Billion

\n

As of February 2024 Sitio Royalties has a market cap of $3.45 Billion.\nThis makes Sitio Royalties the world's 3202th most valuable company by market cap according to our data. The market capitalization, commonly called market cap, is the total market value of a publicly traded company's outstanding shares and is commonly used to measure how much a company is worth.

\n
\n

Market cap history of Sitio Royalties from 2022 to 2024

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End of year Market Cap

\n
\n\n\n\n\n\n\n\n\n\n\n
YearMarket capChange
2024$3.45 B-6.52%
2023$3.69 B52.76%
2022$2.41 B
\n
\n
\n

End of Day market cap according to different sources

\n

On Feb 27th, 2024 the market cap of Sitio Royalties was reported to be:

\n
$3.44 Billion
by Yahoo Finance \"info \"info
$3.44 Billion
by CompaniesMarketCap \"info \"info
$3.44 Billion
by Nasdaq \"info \"info
$3.44 Billion
by Iex Cloud \"info \"info
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What is the market capitalization of a company?

\n

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
\nIn most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

\n

DISCLAIMER

\n

\nCompaniesMarketCap is receiving financial compensation for Delta App installs.
\nCompaniesMarketCap is not associated in any way with CoinMarketCap.com
\nStock prices are delayed, the delay can range from a few minutes to several hours.
\nCompany logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

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\n\n\n\n\n", + "page_last_modified": "" + }, + { + "page_name": "Market Capitalization: What It Is, Formula for Calculating It", + "page_url": "https://www.investopedia.com/investing/market-capitalization-defined/", + "page_snippet": "She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands. ... Market capitalization, or "market cap", is the aggregate market value of a company represented in a dollar amount.For instance, Microsoft with a stock price of around $300 per share had a market cap of $2,3 trillion as of Q2 2022, while Berkshire Hathaway (BRK.A), with a much higher stock price of more than $50,000 per share, had a lower market cap of $761 billion. Comparing the two companies by solely looking at their stock prices would not give a true representation of their actual relative values. With billions of dollars worth of valuation, a large-cap company may have more room to invest a few hundred millions in a new stream of business and may not take a big hit if the venture fails. Market capitalization, or \"market cap\" is the aggregate market value of a company represented in dollar amount. Market capitalization, or \"market cap\", is the aggregate market value of a company represented in a dollar amount. Since it represents the \u201cmarket\u201d value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares. They may perceive a higher stock price as a measure of a company\u2019s stability or a lower price as an investment available at a bargain. Stock price alone does not represent a company's actual worth. Market capitalization is the correct measure to look at, as it represents the true value as perceived by the overall market.", + "page_result": "\n\t\t\t\t\n\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t \n \n \n\n\t\t\t\t\t\n\t\t\t\t\t\n\n\n\n\n\n\n\n\nMarket Capitalization: What It Is, Formula for Calculating It\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\n\t\t\n\n\n\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n\n\n\n\n
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\n\nTable of Contents\n\n\n\n
\n
    \n
  • \n
    \nWhat Is Market Capitalization?\n
    \n
  • \n
  • \n
    \nUnderstanding Market Cap\n
    \n
  • \n
  • \n
    \nTypes\n
    \n
  • \n
  • \n
    \nImportance of Market Cap\n
    \n
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  • \n
    \nSpecial Considerations\n
    \n
  • \n
  • \n
    \nMarket Cap FAQs\n
    \n
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    \nThe Bottom Line\n
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\n

\nMarket Capitalization: What It Is, Formula for Calculating It

\n
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\n
\n
\nBy\nShobhit Seth\n
\n
Updated April 07, 2022
\n
\n
\n
\n\n\n\nReviewed by\n
Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT).

\" tabindex=\"0\" data-inline-tooltip=\"true\">\nGordon Scott\n
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Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT).

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\n

What Is Market Capitalization?

\n

\nMarket capitalization, or \"market cap\", is the aggregate market value of a company represented in a dollar amount. Since it represents the \u201cmarket\u201d value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares.\n

\n
\n

\nMarket cap is also used to compare and categorize the size of companies among investors and analysts.\n

\n
\n
\n
\n

\nKey Takeaways

\n
\n
  • Market capitalization is the total dollar value of all outstanding shares of a company at the current market price.
  • Market cap is used to size up corporations and understand their aggregate market value.
  • Companies may be categorized as large-, mid-, or small-cap depending on their market capitalization.
  • Blue-chip companies are often large- or mega-cap stocks, while the very smallest are referred to as micro-caps.
\n
\n
\n

Understanding Market Capitalization

\n

\nMarket cap is calculated by multiplying a company's outstanding shares by the current market price of one share. Since a company has a given number of outstanding shares, multiplying X with the per-share price represents the total dollar value of the company.\n

\n
\n

\nOutstanding shares are the total amount of shares\u00a0currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company\u2019s officers and insiders.\n

\n
\n

Formula and Calculation

\n

\nThe formula for market cap is:
\n

\n
\n

\n\n\n\n\n\nMarket Cap\n\n\n=\n\n\nPrice Per Share\n\n\n\u00d7\n\n\nShares Outstanding\n\n\n\n\\text{Market Cap} = \\text{Price Per Share} \\times \\text{Shares Outstanding}\n\n\nMarket Cap=Price Per Share\u00d7Shares Outstanding\n

\n
\n

\nFor example, if ABC Corp. trades at $30 per share and had one million outstanding shares, its market capitalization would be ($30 x 1 million shares) = $30 million.\n

\n
\n

\nSince the market price of shares of a publicly-listed company keeps changing with each passing second, the market cap also fluctuates accordingly. The number of outstanding shares can also change over time.\n

\n
\n

\nNote that changes to the number of outstanding shares are infrequent, and the figure changes only when the company undertakes certain corporate actions, such as issuing additional shares through a secondary offering, exercising employee stock options (ESO), issuing/redeeming other financial instruments, or buying back its shares under a share repurchase program.\n

\n
\n

\nEssentially, the changes in market cap are largely attributed to the share price changes, though investors should keep an eye on corporate-level developments that may change the number of outstanding shares once in a while.\n

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Types of Market Capitalization

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\nSince capitalization represents a dollar value that can vary widely, different buckets and associated nomenclatures exist for categorizing the different market cap ranges. Below are the commonly used standards for each capitalization.\n

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Mega Cap

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\nMega-cap companies are those with a market cap of $200 billion or higher. They are the largest publicly traded companies by market value, and typically represent the leaders of a particular industry sector or market. A limited number of companies qualify for this category.\n

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\nFor example, as of Q2 2022, technology company Apple (AAPL) has a market cap of $2.9 trillion, making it the most valuable company in the world; while online retailer Amazon.com (AMZN) came in next at $1.6 trillion.\n

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Large Cap

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\nCompanies that are considered large-cap have a market cap between $10 billion to $200 billion. For example, in Q2 2022, International Business Machines Corp. (IBM) and General Electric (GE) are large-cap stocks with market caps of $116 billion and $99 billion, respectively.\n

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\nBoth mega and large-cap stocks are referred to as\u00a0blue chips and are considered to be relatively stable and secure. However, there is no guarantee of these companies maintaining their stable valuations as all businesses are subject to market risks.\n

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Mid Cap

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\nMid-cap stocks range from $2 billion to $10 billion in market cap, and this group of companies is considered to be more volatile than the large-cap and mega-cap companies. Growth stocks represent a significant portion of the mid-caps.\n

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\nSome of the companies may or may not be industry leaders, but they may be on their way to becoming one. First Solar (FSLR), is a mid-cap leader in the solar power field, with a market cap of around $8 billion as of Q2 2022.\n

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Small Cap

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\nSmall-cap companies have a market cap between $300 million to $2 billion. While the bulk of this category is comprised of relatively young companies that may have promising growth potential, a few established old businesses which may have lost value in recent times for a variety of reasons also figure in the list.\n

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\nOne example is Bed Bath & Beyond Inc. (BBBY) which has a market cap of $2 billion as of Q2 2022, putting it right on the high-end of small cap stocks. Track records of such companies aren\u2019t as long as those of the mid-to-mega-caps, but they also present the possibility of greater capital appreciation.\n

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Micro Cap

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\nCompanies that are considered micro-cap consist mostly of penny stocks\u2014this category denotes companies with market capitalizations between $50 million to $300 million. For instance, a lesser-known pharma company with no marketable product and working on developing a drug for an incurable disease, or a five-person company working on artificial intelligence (AI)-powered robotics technology may be listed with a small valuation and limited trading activity.\n

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\nWhile the upward potential of such companies is high if they succeed, the downside potential is equally worse if they completely fail. Investments in such companies may not be for the faint-hearted and require more due diligence.\n

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Nano Cap

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\nNano caps are another high-risk, high-reward layer beyond the micro-caps. Nano-cap companies have market caps below $50 million. These companies are considered to be the riskiest, and the potential for gain varies widely. These stocks typically trade on the pink sheets or Over-the-Counter Bulletin Board (OTCBB).\n

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\nHistorical analysis reveals that mega- and large-caps often experience slower growth with lower risk, while small-caps have higher growth potential but come with higher risk. It is common to see companies making transitions from one category to the other depending upon the change in their market cap valuations regularly. Along with companies, other popular investments like mutual funds and exchange-traded funds (ETFs) are also categorized as small-cap, mid-cap, or large-cap. In the case of funds, the terms represent the types of stocks in which the fund primarily invests.\n

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Importance of Market Capitalization

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\nSome traders and investors, mostly novices, can mistake a stock's price to be an accurate representation of that company\u2019s worth, health, and/or stability. They may perceive a higher stock price as a measure of a company\u2019s stability or a lower price as an investment available at a bargain. Stock price alone does not represent a company's actual worth. Market capitalization is the correct measure to look at, as it represents the true value as perceived by the overall market.\n

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\nFor instance, Microsoft with a stock price of around $300 per share had a market cap of $2,3 trillion as of Q2 2022, while Berkshire Hathaway (BRK.A), with a much higher stock price of more than $50,000 per share, had a lower market cap of $761 billion. Comparing the two companies by solely looking at their stock prices would not give a true representation of their actual relative values.\n

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\nWith billions of dollars worth of valuation, a large-cap company may have more room to invest a few hundred millions in a new stream of business and may not take a big hit if the venture fails. However, a mid-cap or micro-cap company making a similar value investment may be susceptible to big blows if their venture fails as they don\u2019t have that bigger cushion to absorb the failure. If the venture succeeds for large-cap companies, it may appear small in their profit numbers. But if the company scales up with its success, it can lead to profits of larger magnitudes. On the other hand, the success of such ventures for a mid-cap company can bolster its valuations to significant heights.\n

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A high stock price in and of itself does not always indicate a healthy or growing company. It can still have a relatively small market cap!

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Special Considerations

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\nValuations of mid-cap or small-cap companies often take a hit when there are reports of a large-cap company encroaching into their space of products or services. For instance, the entry of Amazon into cloud hosting services under the Amazon Web Services (AWS) umbrella has been posing a big threat to smaller companies operating in the niche space.\n

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\nGenerally, investments in mega-cap or large-cap stocks are considered more conservative with less volatility than investments in small-cap stocks. Though mid and small-cap stocks offer high return potential to risk-taking investors, the relatively limited resources at the disposal of such companies make their stocks more susceptible to competition, uncertainties, and business or economic downturn.\n

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\nThe different measurement of Market Cap values also form the basis to launch a variety of market indexes. For example, the benchmark equity index, the S&P 500, includes the top 500 U.S. companies which are weighted based on their market cap value, while the FTSE 100 index includes the top 100 companies listed on the London Stock Exchange with the highest market capitalization. Both indexes use the Float-Adjusted Market Cap Calculation.\n

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\nSuch indexes not only represent the overall market developments and sentiments, but are also used as benchmarks to track the performance of various funds, portfolios, and individual investments.\n

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Why Are Small-Cap Stocks Often More Volatile?

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Small-cap stocks have relatively lower market values because these tend to be younger growth companies. Because of their growth orientation, they may be riskier since they spend their revenues on growth and expansion. Small-cap stocks are therefore often more volatile than those of larger companies. Generally, large-cap stocks experience slower growth and are more likely to pay dividends than faster-growing, small- or mid-cap stocks.

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What Is a Market Capitalization-Weighted Index?

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Many stock indexes, such as the S&P 500, are weighted by market cap. This means that stocks with larger market capitalizations make up comparatively more of the index.

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How Do Stock Splits Affect Market Cap?

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When a company undergoes a stock split, it increases the number of shares outstanding while reducing the price of each share by a similar proportion. For instance, in a 2:1 stock split, there will be twice as many shares, but at half the pre-split price. As a result, splits do not inherently influence market cap.

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The Bottom Line

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\nAn understanding of the market cap concept is important for not only the individual stock investor but also\u00a0investors\u00a0of various funds. Market caps can help investors know where they are putting their hard-earned money.\n

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\nArticle Sources
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\nInvestopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our\neditorial policy.\n
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  1. Yahoo Finance. "Apple, Inc."

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  3. Yahoo Finance. "Amazon"

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  5. Yahoo Finance. "International Business Machines Corporation (IBM)."

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  7. Yahoo Finance. "General Electric."

  8. \n
  9. Yahoo Finance. "First Solar."

  10. \n
  11. Yahoo Finance. "Bed Bath & Beyond Inc. (BBBY)."

  12. \n
  13. U.S. Securities and Exchange Commission. "Investor Bulletin: Microcap Stock Basics (Part 1 of 3: General Information)."

  14. \n
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\nRelated Terms
\n
\n
\nWhat Is a Large Cap (Big Cap) Stock? Definition and How to Invest\n
\nLarge cap (big cap) refers to a company with a market capitalization value of more than $10 billion.
\nmore\n
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\nMid-Cap: Definition, Other Sizes, Valuation Limits, and Example\n
\nMid-cap is the term given to companies with a market capitalization\u2014or market value\u2014between $2 and $10 billion.
\nmore\n
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\nMicro-Cap: Definition in Stock Investing, Risks Vs. Larger Caps\n
\nA micro-cap is a small company that has a market capitalization between $50 million and $300 million and is considered riskier than a large-cap stock.
\nmore\n
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\nMarket Capitalization: How Is It Calculated and What Does It Tell Investors?\n
\nMarket capitalization is the total dollar market value of all of a company's outstanding shares.
\nmore\n
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\nMid-Cap Value Stock: What It is, How it Works, Example\n
\nIn the stock markets, a mid-cap value stock is a moderate-sized company that is considered a good pick for value investors.
\nmore\n
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\nWhat Are Small-Cap Stocks, and Are They a Good Investment?\n
\nA small-cap stock has a total share value of $300 million to $2 billion, although the precise figures used vary among brokerages.
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