Market Capitalisation

Formal

Take all the shares of a company and multiply this by the market value of each share. This is the total worth of the company in terms view of its current (stock) market valuation. Answers appear in Millions/Billions of Dollars. It is not company profitability, nor the original amount subscribed for the shares.

Real-world Example

A company has 10 million shares trading at $25 each - a market capitalisation of $250M, representing the total value the stock market currently places on the business.