What is the term for a company’s total stock-market value, calculated from its share price and shares outstanding?

The term for a company’s total stock-market value is market capitalization.

Market capitalization is calculated by multiplying the current market price of one share by the total number of outstanding shares. If a company has 1 billion shares trading at $20 each, its market capitalization is $20 billion.

Investors commonly use market capitalization to compare the relative size of listed companies. Businesses are often described as small-cap, mid-cap, or large-cap, although the exact boundaries can vary between markets and financial institutions.

Market capitalization differs from enterprise value, which also considers debt, cash, and other claims on a business. It also differs from book value, which is based on accounting records. Rankings of the world’s richest companies by market cap use share prices and share counts, so rankings can change without a company opening a new factory or reporting new sales.