Market Capitalization Meaning: Why Price Doesn’t Always Equal Value

Keep reading to learn more about it doesn’t always reflect a company’s actual value.

Market Capitalization Meaning

Market cap is also incorrectly known as what the company is really worth. The market cap formula is simply this:

The amount of dollars per share of a company x The total number of shares of that company.

Market capitalization is about the price of a company.

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[kasandraja]

Omg I'm obsess with these videos! Short and to the point!!! Love it

[Abhishekgaikwad]

I was Confused between M.cap and company Value and Lots of youtube video i watched earlier clam that M.Cap is the Overall value of the Company.
Now my Confusion is Clear 😊
That's for Making this Video

[behnamtavakolzadeh]

one of the best videos in YT, clear, easy to understand and very reasonable. thanks Phil

[badwf]

So how do you find its value? This info is good but doesn't help me make good decisions

[Hypedhitman]

Thank you for the free info I love your videos

[gonzalobath]

Awesome!!! Im from SouthAmerica, you giveme the best explanation.

[DrivenMuffin]

So if market capitalization goes down does that suggest that money is being taken out of the market? Since price goes down, that means demand goes down, and thus people converting back to fiat?

[phoeNYkx]

I think Enterprise Value is a good back-of-the-envelope calculation to assess a company's value.

[hithisisedward]

Fantastic videos.  Can you tell us what metrics we should be on a look out to give us an idea of the value of the shares we're paying for?

[TruthDefender]

so what would be the minimum market cap for company to invest? I remember in one of your video youve said its 500m?

[futurelegance]

W.Buffett 's succes is based on this : research the value of a company, then buy when the stock is cheaply priced.

[RungAtATime]

I feel like I should put 10k in mutual funds, 10k in index funds, and hold another 10k and then wait for the market to crash so I can buy everything on sale.

[WeBeItching]

what if a company is extremely high on market cap and they are a start up? What risks does this carry?

[robl]

how do you figure out a companies worth?

[readynowforever]

That $100, 000 Maserati that you paid $200, 000 for, looks more like a $28, 000 Mustang. So, you really got screwed. But, the good news is, keep it in an unbreakable plastic bag for about 200 years, and I am all but certain that the price will go up so that you can redeem your loses.

[rupeshkumargupta]

dear, sir I know all the answer on advance !