1. Shareholder value measurement.
The total market value of a listed company's equity.
Sometimes known as the 'equity market capitalisation', or abbreviated to 'capitalisation'.
The term highlights the idea that the market price may be overvaluing - or undervaluing - the company, when compared with its intrinsic value.
This concept is particularly important in the context of value investing.
2. Markets - assets.
The total current market value of any asset or class of assets.
- Market capitalisation of cryptocurrencies falls by two thirds
- "Cryptocurrency markets have suffered through several well publicised debacles, most recently, the spectacular downfall of their golden goose, the FTX cryptocurrency exchange.
- Consequently, the market capitalisation of cryptocurrencies has fallen from almost $3tn in late 2021 to less than $1tn now."
- Tamara Basic Vasiljev, Senior Economist, Oxford Economics - The Treasurer, March 2023, p20.