![]() ![]() ![]() The answer to this question depends on the metric used. For this reason, market capitalization is often reported as market value. Such valuations are generally made on a case-by-case basis though, and not regularly reported. Market value is therefore useful for determining whether a company’s shares are over- or undervalued, and in arriving at a price if the company is to be sold. In this sense it aims to estimate the overall value of a company, with share price only being one element. It is determined by multiple factors, including profitability, corporate debt, and the market environment as a whole. On the other hand, market value technically refers to what a company is worth in a much broader context. Accordingly, many stock exchanges such as the New York or London Stock Exchange release market capitalization data on their listed companies. Strictly speaking, market capitalization (or market cap) is the worth of a company based on the total value of all their shares an important metric when determining the comparative value of companies for trading opportunities. Market value and market capitalization are two terms frequently used – and confused - when discussing the profitability and viability of companies. How are market value and market capitalization determined? ![]() Apple also led the ranking of the world's most profitable companies in 2020, with a net income of 51.41 billion U.S. Rounding out the top five were some of the world’s most recognizable brands: Saudi Arabian Oil Company (Saudi Aramco), Microsoft, Google’s parent company Alphabet, and Amazon. dollars as of April 2021, Apple was the world’s largest company in 2022. With a market capitalization of 2.64 trillion U.S. ![]()
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