This market capitalization template helps you differentiate between market capitalization and enterprise value.
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Market Capitalization (Market Cap) is the most recent market value of a company’s outstanding shares. The Market Cap is equal to the current share price multiplied by the number of shares outstanding.
The investing community often uses the market capitalization value to rank companies and compare their relative sizes in a particular industry or sector. To determine a company’s market cap, simply take its current market share price and multiply the figure by the total number of shares outstanding.
Market Capitalization = Current Market Price of Share x Total Outstanding Shares
It’s important to know that a company’s market capitalization is the total value of its equity only. A company’s Enterprise Value is the value of the entire business, including both equity and debt capital.
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