What market-based measure ranks Apple, Microsoft, and Nvidia by the value of their publicly traded shares?

Market capitalization is the market-based measure used to rank companies by the value of their publicly traded shares.

It is calculated by multiplying the current share price by the total number of outstanding shares. If a company has 1 billion shares priced at $50 each, its market capitalization is $50 billion.

Market capitalization differs from revenue, which measures sales, and profit, which measures what remains after expenses. It also differs from enterprise value, which adjusts equity value for debt, cash, and other balance-sheet items.

The ranking of the world’s richest companies can change whenever share prices move. It can also be affected by stock splits, share buybacks, or the issuance of new shares, even when the underlying business has not changed immediately.