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Market capitalisation

In a nutshell

Market capitalisation is the value of a company’s shares at the current market price.

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Explained simply

It is calculated by multiplying the share price by the number of shares. It is neither the company’s revenue nor its cash balance.

A practical example

Hypothetical example: a listed company has one million shares priced at CFA 2,000 each; its market capitalisation is CFA 2 billion.

Further reading

Source: AMF — Market capitalisation.

Try it yourself

Calculate a market capitalisation

Number of shares × price per share

Market capitalisation

2,000,000,000 CFA francs

Fictional figures. Change either value to see the result; no live market data is used.

Quick check: what does this amount represent?

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