What is the standard term for a company’s total stock-market value?

Market capitalization is the standard term for a company’s total stock-market value.

It is calculated by multiplying the current price of one share by the number of outstanding shares. For example, a company with 1 billion shares priced at $50 has a market capitalization of $50 billion. This calculation is why market-cap rankings can change whenever a share price moves.

Market capitalization is not the same as revenue, profit, or total assets. A fast-growing company can have a very high market cap despite relatively modest current earnings, while an older company may generate large sales but receive a lower valuation from investors.

Enterprise value is another related measure. It adjusts market capitalization for debt, cash, and certain other claims, so it is often used when comparing the value of entire operating businesses. Market-cap lists, however, rank the value of shareholders’ equity.