Private Equity Glossary

Market Capitalization

The total dollar value of all of a company’s outstanding shares. It is calculated by multiplying the number of outstanding shares times the current market share price and is often referred to as market cap.

The total dollar value of all outstanding shares. Computed as shares multiplied by current price per share. Prior to an IPO, market capitalization is arrived at by estimating a company’s future growth and by comparing a company with similar public or private corporations.

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