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What is Market cap?
Market cap is the total value of a public company, found by multiplying its share price by its number of shares.
- Category Business & money
- Also called market capitalization, market capitalisation
- Updated 20 Oct 2026
Market cap, explained simply
Market cap is short for market capitalization. It tells you how much the stock market says a whole public company is worth.
You find it by taking the price of one share and multiplying it by the number of shares.
This matters because AI news often compares companies by size. A bigger market cap means the market values the company more, but not that it is better.
For example, if a company has many shares and each one costs a few dollars, you multiply them to get the total. The number moves all day as the price moves.
On ITG Now, daily AI news stories may mention a company's market cap when stock prices move after AI news.
Related terms
ValuationIPOAI bubbleFunding roundSemiconductor
Questions people ask about Market cap
Is market cap the same as profit?
No. Market cap is the market's price for the whole company. Profit is money the company earns after costs.
Does a higher market cap mean a better company?
Not always. It shows how the market values the company today, and that can change quickly.
Market cap vs valuation: what is the difference?
Market cap is for public companies and uses the stock price. Valuation is a wider word, often used for private companies.