Market capitalisation

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Revision as of 15:25, 19 December 2020 by imported>Doug Williamson (Add context.)
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(Market cap).

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.


See also