Market capitalisation

From ACT Wiki
Jump to: navigation, search

Shareholder value measurement.

(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