Market Cap

Market Capitalization (Market Cap) is a measure of the total market value of a company's outstanding shares. It is calculated by multiplying the company’s share price by the total number of outstanding shares in the market. Market cap is often used to assess the size of a company and its position in the market.

The formula for Market Cap is:

Market Cap = Share Price x Total Outstanding Shares

For example, if a company’s share price is AED 100, and there are 1 million shares outstanding, the market cap would be AED 100 million. Market cap is a key factor in determining a company's size and its classification as a small-cap, mid-cap, or large-cap company. It also provides investors with a quick snapshot of a company’s market value and potential for growth.