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What is market cap?

The total price tag of a company if you bought every outstanding share.

Apple Inc., COCA COLA CO compared — live data

Companymarket capHealth Score
Apple Inc.$5,061.7B ✓47.5
COCA COLA CO$404.8B50.5

✓ = better on this metric alone (higher wins). Values refresh from live data on every request.

What it is

Market capitalization is share price multiplied by total shares outstanding — in other words, what it would cost to buy the entire company at today's price. It's the standard way to compare the size of two companies, since share price alone tells you nothing (a $20 stock with 5 billion shares is a far bigger company than a $500 stock with 10 million shares).

How it's calculated

Market cap = share price × shares outstanding. This is the denominator behind P/E, P/B, and P/S — all three compare this one number to a different piece of the income statement or balance sheet.

How to read the number

Company size roughly buckets into large-cap (very large, established companies), mid-cap, and small-cap (smaller, often less liquid, often more volatile) — size alone is a rough proxy for stability and liquidity, not for whether the stock is a good value at its current price.

Common mistakes

Share price by itself says nothing about whether a stock is "cheap" — a $5 stock isn't automatically cheaper than a $500 one; what matters is the price relative to earnings, book value, or sales (P/E, P/B, P/S), not the raw share price.

Related terms

What is the P/E ratio? What is the P/B ratio?

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