What term describes the total value of a company's outstanding shares?

The term for the total value of a company’s outstanding shares is market capitalization.

Market capitalization is calculated by multiplying a company’s current share price by the number of its outstanding shares. For example, if a company has 10 million outstanding shares priced at $20 each, its market capitalization is $200 million. Investors commonly use the abbreviated term “market cap.”

Market capitalization is often used to group companies into broad categories such as small-cap, mid-cap, and large-cap stocks. These labels are useful for comparing companies of roughly similar size, although the exact boundaries can vary among financial sources and markets.

Market cap is not the same as revenue, profit, book value, or enterprise value. It reflects what the equity market currently values the company’s shares at, not the total accounting value of its assets. It can change throughout the trading day as the share price moves, even when the number of shares stays constant.