Many analysts contend that the only meaningful value of a company is the value the stock market puts on it. That value is known as market capitalisation and is simply the number of shares in issue multiplied by the market price per share.
If not all of the company shares are available to the public (free float or free capital) then the market capitalisation figure is adjusted upward to take account of this.
If not all of the company shares are available to the public (free float or free capital) then the market capitalisation figure is adjusted upward to take account of this.
Stock prices are constantly fluctuating, so market capitalisations also fluctuate.
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