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Market Capitalization

September 29th, 2008 | 4 Comments | Posted in Tutorials

Market Capitization or Market Cap = Number of Issued Shares x Latest Share Price

For example if a company has 100 million shares and its share price is RM5, its market cap is RM500 million. In theory the stock market is placing a value of RM500 million for that whole company.

Note: Appraising a company’s true value may become harder if there is a large number of derivative instruments (eg options/warrants) issued by a company.

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4 Responses to “Market Capitalization”

  1. Butterfly Says:

    is there a list of leading companies in Malaysia in term of Market Capitalization?

  2. larry Says:

    Butterfly – For the largest Bursa Malaysia companies by Market Cap:
    http://www.horizon.my/investor/list.php

    or click on Top 50 at the top.

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  1. Horizon Investment Portal » Blog Archive » Overview of Investment Indicators Used  
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