Market Capitalization Index Calculator

✖Number of Shares Outstanding of Security refers to the total quantity of shares issued by a particular company that are held by investors.ⓘ Number of Shares Outstanding of Security [Qi]			+10% -10%
✖Price of the Security refers to the current market price at which a single share of a particular security is being bought or sold.ⓘ Price of the Security [P_i]			+10% -10%
✖Number of Securities in the Index refers to the total number of securities in the index during a point of time.ⓘ Number of Securities in the Index [N]			+10% -10%

✖Market Capitalization is a measure used to determine the total value of a publicly traded company.ⓘ Market Capitalization Index [wi^M]

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Formula

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Market Capitalization Index

Formula

`"wi"^{"M"} = ("Qi"*"P"_{"i"})/(sum(x,0,"N",("Qi"*"P"_{"i"})))`

Example

`"0.25"=("300"*"125")/(sum(x,0,"3",("300"*"125")))`

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Market Capitalization Index Solution

STEP 0: Pre-Calculation Summary

Formula Used

Market Capitalization = (Number of Shares Outstanding of Security*Price of the Security)/(sum(x,0,Number of Securities in the Index,(Number of Shares Outstanding of Security*Price of the Security)))
wi^M = (Qi*P_i)/(sum(x,0,N,(Qi*P_i)))
This formula uses 1 Functions, 4 Variables

Functions Used

sum - Summation or sigma (∑) notation is a method used to write out a long sum in a concise way., sum(i, from, to, expr)

Variables Used

Market Capitalization - Market Capitalization is a measure used to determine the total value of a publicly traded company.
Number of Shares Outstanding of Security - Number of Shares Outstanding of Security refers to the total quantity of shares issued by a particular company that are held by investors.
Price of the Security - Price of the Security refers to the current market price at which a single share of a particular security is being bought or sold.
Number of Securities in the Index - Number of Securities in the Index refers to the total number of securities in the index during a point of time.

STEP 1: Convert Input(s) to Base Unit

Number of Shares Outstanding of Security: 300 --> No Conversion Required
Price of the Security: 125 --> No Conversion Required
Number of Securities in the Index: 3 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

wi^M = (Qi*P_i)/(sum(x,0,N,(Qi*P_i))) --> (300*125)/(sum(x,0,3,(300*125)))

Evaluating ... ...

wi^M = 0.25

STEP 3: Convert Result to Output's Unit

0.25 --> No Conversion Required

FINAL ANSWER

0.25 <-- Market Capitalization

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

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< 19 Equity Calculators

Float-Adjusted Market Capitalisation Index

Go Float Adjusted Market Capitalisation = (Fraction of Shares Outstanding*Number of Shares Outstanding of Security*Price of the Security)/(sum(x,1,Number of Securities in the Index,(Fraction of Shares Outstanding*Number of Shares Outstanding of Security*Price of the Security)))

Market Capitalization Index

Go Market Capitalization = (Number of Shares Outstanding of Security*Price of the Security)/(sum(x,0,Number of Securities in the Index,(Number of Shares Outstanding of Security*Price of the Security)))

Laspeyres Price Index

Go Laspeyres Price Index = ((sum(x,1,2,(Price in Final Period*Quantity in Base Period)))/(sum(x,1,2,(Price in Base Period*Quantity in Base Period))))*100

Paasche Price Index

Go Paasche Price Index = ((sum(x,1,3,(Price in Final Period*Quantity in Final Period)))/(sum(x,1,3,(Price in Base Period*Quantity in Final Period))))*100

Altman's Z Score Model

Go Zeta Value = 1.2*Working Capital+1.4*Retained Earnings+3.3*Earnings Before Interest and Taxes+0.6*Market Value of Equity+1.0*Total Sales

Capital Allocation Line

Go Expected Return on Portfolio = ((Expected Return on Treasury Bill*Weight of Treasury Bill)+(Expected Return of Stock*Weight of Stock))*100

Justified Forward Price to Earnings Ratio

Go Justified Forward Price to Earnings Ratio = (Dividend/Earnings Per Share)/(Cost of Equity-Growth Rate)

Margin Call Price

Go Margin Call Price = Initial Purchase Price*((1-Initial Margin Requirement)/(1-Maintenance Margin Requirement))

Dividend Coverage Ratio

Go Dividend Coverage Ratio = (Net Income-Preferred Dividend)/Common Dividend

Fisher Price Index

Go Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index)

Momentum Indicator

Go Momentum Indicator = (Closing Price of Particular Stock/Closing Price of Stock N Days Ago)*100

Marshall-Edgeworth Price Index

Go Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2

Dividend Growth Rate

Go Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1

Price to Cash Flow Ratio

Go Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow

Margin Account Value

Go Margin Account Value = (Margin Loan)/(1-Maintenance Margin)

Sustainable Growth Rate

Go Sustainable Growth Rate = Retention Ratio*Return on Equity

Ev to Ebitda Ratio

Go Enterprise Value to Ebitda Ratio = Enterprise Value/EBITDA

Maximum Leverage Ratio

Go Maximum Leverage Ratio = 1/Initial Margin Requirement

Equal Weighting

Go Equal Weighting = 1/Number of Securities in the Index

Market Capitalization Index Formula

What is Market Capitalisation Index?

Market capitalization, often referred to as "market cap," is a fundamental metric used in finance to measure the total value of a publicly traded company. It is calculated by multiplying the current market price of a company's outstanding shares by the total number of those shares. Market capitalization provides investors and analysts with a snapshot of a company's size and its relative importance within the broader market.
The concept of market capitalization is essential for investors in evaluating investment opportunities and assessing the risk associated with a particular stock. It serves as a key indicator of a company's overall worth in the eyes of the market and is widely used for comparing companies of different sizes within the same industry or across different sectors.
Companies with larger market capitalizations are often considered more stable and less volatile compared to those with smaller market caps.

How to Calculate Market Capitalization Index?

Market Capitalization Index calculator uses Market Capitalization = (Number of Shares Outstanding of Security*Price of the Security)/(sum(x,0,Number of Securities in the Index,(Number of Shares Outstanding of Security*Price of the Security))) to calculate the Market Capitalization, The Market Capitalization Index formula is a fundamental metric used in finance to measure the total value of a publicly traded company. Market Capitalization is denoted by wi^M symbol.

How to calculate Market Capitalization Index using this online calculator? To use this online calculator for Market Capitalization Index, enter Number of Shares Outstanding of Security (Qi), Price of the Security (P_i) & Number of Securities in the Index (N) and hit the calculate button. Here is how the Market Capitalization Index calculation can be explained with given input values -> 0.25 = (300*125)/(sum(x,0,3,(300*125))).

FAQ

What is Market Capitalization Index?

The Market Capitalization Index formula is a fundamental metric used in finance to measure the total value of a publicly traded company and is represented as wi^M = (Qi*P_i)/(sum(x,0,N,(Qi*P_i))) or Market Capitalization = (Number of Shares Outstanding of Security*Price of the Security)/(sum(x,0,Number of Securities in the Index,(Number of Shares Outstanding of Security*Price of the Security))). Number of Shares Outstanding of Security refers to the total quantity of shares issued by a particular company that are held by investors, Price of the Security refers to the current market price at which a single share of a particular security is being bought or sold & Number of Securities in the Index refers to the total number of securities in the index during a point of time.

How to calculate Market Capitalization Index?

The Market Capitalization Index formula is a fundamental metric used in finance to measure the total value of a publicly traded company is calculated using Market Capitalization = (Number of Shares Outstanding of Security*Price of the Security)/(sum(x,0,Number of Securities in the Index,(Number of Shares Outstanding of Security*Price of the Security))). To calculate Market Capitalization Index, you need Number of Shares Outstanding of Security (Qi), Price of the Security (P_i) & Number of Securities in the Index (N). With our tool, you need to enter the respective value for Number of Shares Outstanding of Security, Price of the Security & Number of Securities in the Index and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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