Market capitalisation

(Market cap).

The total market value of a listed company's equity.

Sometimes known as the 'equity market capitalisation', or abbreviated to 'capitalisation'.

The term highlights the idea that the market price may be overvaluing - or undervaluing - the company, when compared with its intrinsic value.

This concept is particularly important in the context of value investing.

See also

• Capital
• Capitalisation
• Fair value
• Fundamental analysis
• Intrinsic value
• Large-cap
• Market value
• Mid-cap
• Small-cap
• Value investment