Differences in Market Capitalization and Market Value

#### Dear serey all Differences in market capitalization and market value in various fields in the financial sector, including economics, accounting and investment, accurate assessment of the value of a company is very important. There are many ways to measure company size and value, and confusion that naturally arises, especially with terms that sound similar to ordinary people. Two terms including market capitalization and market value. Although each is a measure of a company's assets, both are very different, both in calculation and precision. Market capitalization, which is referred to as "market cap", is a very simple metric based on stock prices. To calculate the company's market capitalization, simply multiply the number of shares outstanding at the current price of one stock.  For example, a company with 50 million shares and a share price of $ 100 per share will have a market capitalization of $ 5 billion. The definition of "value" of the company is often used in the investment sector to determine the size and strength of the company when analyzing the potential of the trading opportunities it has. The initial confusion comes from the fact that market capitalization is basically a synonym for equity market value. However, these concepts are only simple calculations based on assets. While market capitalization is often referred to as company value, or how much the company is "valuable", the company's market value that actually has far more complex meanings. Market value is assessed using many metrics and multiples, such as price-income, price-sales and return on equity. These different metrics take into account several factors besides shareholder equity, such as outstanding bonds, long-term growth potential, corporate debt, taxes, and interest payments. ___ ___ ### Thanks @sunbahri