Glossary
Market capitalisation: meaning, example and why it matters
A company's total market value: share price multiplied by the number of its shares. Companies are often grouped as large-cap, mid-cap or small-cap by this size.
Worked example
A company with 50 crore shares trading at ₹400 has a market capitalisation of 50 crore × ₹400 = ₹20,000 crore.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
Market capitalisation is how companies are sized into large-cap, mid-cap and small-cap groups, which is how many funds and indices are organised.
Related terms
See it in practice
Frequently asked questions
Is market capitalisation what it would cost to buy a company?
No. It is the market's current value of all shares at the last traded price. It moves with the share price and is not an offer price.
Is this page investment advice?
No. Market capitalisation is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.