Market capitalization (market cap) is the total market value of a publicly traded company, calculated by multiplying its current share price by the total number of outstanding shares.
Formula: Market Cap = Current Share Price x Total Outstanding Shares.
Companies are classified into three main categories by market cap: Large-cap, Mid-cap, and Small-cap.
On the Dhaka Stock Exchange, the DSE30 index is composed of the top 30 largest companies by market capitalization.
Market cap reflects market perception and investor expectations rather than actual assets, revenue, or profits.
However, market cap alone is not sufficient for company analysis. It should be used alongside other financial metrics.