Price vs. market cap

A share price alone does not tell you how big a company is.

One share is not the whole company

A $500 share is not automatically from a bigger company than a $20 share. Companies split their ownership into very different numbers of shares.

Market cap measures the whole pie

Market capitalization, or market cap, is share price multiplied by all shares outstanding. It is a quick estimate of what the market says the whole company is worth.

Compare like with like

Market cap is useful for seeing whether a company is giant, medium-sized, or small. It still changes with the market and does not prove a company is cheap or expensive.

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