What is Market Cap?

What is Market Cap?

Market Cap, also known as MCap or MKT Cap is basically the markets perceived valuation of a company.

To work out the Market Cap of a company there is a simple calculation:

So if a company has 20,000,000 outstanding shares and it’s share price is currently £2 then the companies Market Cap is £40,000,000

Below is a simple two minute video i found to help explain this if you need it.