For Apple, what does market capitalization measure?

For Apple, market capitalization measures the total value of all its outstanding shares. It is calculated by multiplying the current share price by the number of shares outstanding.

Apple’s market capitalization changes whenever its share price moves. It can also change when Apple issues shares, buys back shares, or otherwise changes the number of shares counted. This makes market cap different from a company’s sales, profit, assets, or cash balance.

Market capitalization is commonly used to compare publicly traded companies. A company with a higher market cap is not necessarily more profitable or less indebted; the figure reflects what investors collectively value its equity at in the stock market.

Apple became one of the world’s most valuable companies as its iPhone, services, and other products expanded globally. Market-cap rankings can change daily, so historical rankings should always be tied to a specific date.