Market cap
The market cap is a financial data indicating the value of a Entreprise to a given moment. As its name indicates it, it is directly related to the Stock exchange courts. The companies Exxon Mobil, General Electric and PetroChina are known to be great market caps.
Way of calculating
The market cap of a Joint stock company is the product of the number of actions by the price contract of each action.
stock exchange
To calculate the market cap, in theory, one multiplies the number of actions which form the Authorized capital company by their Stock exchange courts. But, for technical reasons, countable reality is a little more complex and the theoretical way of calculating is more one estimate that a data exacte.
By definition, the market cap varies parallel to the evolutions of the stock exchange and with those of the number of emitted actions. The stock exchange courts evolves/moves according to various parameters. The number of actions evolves/moves in various cases of modification of the structure of the capital, such as the capital growth, fusion or the OPR.
Role of the indicator
In the financial analysis
The market cap represents in a way coloured, and easy to calculate, the amount which it would be necessary to spend to acquire 100% of the actions. This amount remains theoretical since it is very probable that the advertisement of such a transaction involves a big rise of the stock exchange courts. For this reason, the market cap is often used to characterize the financial “magnitude” of the company.
In the economic analysis
It is one of the indicators used to evaluate the size of a company, like are also the sales turnover, manpower or the market share. For example, in the sector of the production of metal ores, the situation was as follows in 2005:
Great market caps
Exxon Mobil in 2006
In May 2006, Exxon Mobil was the first market cap in the world, i.e. the company which, according to this indicator, had the greatest financial magnitude in the world.
PétroChina in 2007
See also: PetroChina
Since November 5th, 2007, the first world capitalization is consisted the PetroChina group, developed on this date 1.000 billion dollars (690 billion euros) on the Bourse of Shanghai. On this same Exxon date the old number one was worth 490 billion dollars and Microsoft 346 milliards.
This capitalization is however to take with precaution, the group being with dimensions on three money markets, with a valorization of 412 billion $ with New York and HongKong
| Random links: | Annick Dumont | Lista de barcos de la Armada de Estados Unidos | Eurofins Scientific | Pusy-and-Épenoux | American Legends | Identity |