← Glossary
Market Capitalization
The total market value of a company's shares — its share price multiplied by all shares outstanding.
Formula: Market Cap = Current Share Price × Total Shares Outstanding
Market cap is what the market currently values the entire company at, and is the standard way to compare company size across sectors where revenue or profit scales differ enormously (e.g. a bank vs. a textile mill).
It's also the basis for free-float-weighted indices like the KSE-100 — a company's influence on the index depends on its free-float market cap, not its total market cap (see Free Float).