How to Use the Market Capitalization Calculator
The MarketBeat market cap calculator is a tool that investors and traders can use to find the current market value of a stock. The calculator is intuitive, but here are step-by-step instructions:
Step 1: Enter the ticker symbol directly.
If you know the ticker symbol of the stock you’re looking for, just enter that into the “Choose a Stock to Populate Sell Price” field. MarketBeat will populate the tool from its search engine to give you the current market cap for that stock.
Step 2: Enter the share price.
This is simply the current price at which the stock trades. You don’t need to think about it beyond that. However, note that this price will change frequently during the trading day.
Step 3: Enter the number of outstanding shares.
If you’re on the MarketBeat site, you can find this in the right-hand column on the stock profile page.
To determine a company’s market capitalization (or market cap), you will multiply the price of a single share by the number of total shares outstanding (the number of shares available to be publicly traded). The market cap calculation looks like this:
Market cap ＝ Current share price x Outstanding shares
In many cases, you can easily find a company’s market cap without having to do the calculation. In fact, MarketBeat provides the market cap for all the publicly traded stocks in their database. However, for illustrative purposes, let’s look at two examples using the formula:
Company A has 10,000,000 outstanding shares and currently sells stock at $50 per share. The formula looks like this:
Market cap ＝ 50 x 10,000,000
Market cap = $500 million
Company B has 5,000,000 outstanding shares and currently trades at $20 per share. The formula looks like this:
Market cap ＝ 20 x 5,000,000
Market cap = $100 million
