People often divide companies into different size categories based on their market caps:
- Micro-cap: Market cap under $300 million.
- Small-cap: $300 million to $2 billion.
- Mid-cap: From $2 billion to $10 billion.
- Large-cap: Greater than $10 billion.
In this post
What are the five categories of market capitalization?
Levels of market capitalization
| Market cap company level | Market value range |
|---|---|
| Large-cap | $10 billion–$200 billion |
| Mid-cap | $2 billion–$10 billion |
| Small-cap | $300 million–$2 billion |
| Micro-cap | $50 million–$300 million |
What is large-cap category?
A large-cap company has a market capitalization of over $10 billion. A mid-cap company has a market capitalization between $2 billion and $10 billion, and a small-cap company has less than $2 billion in market capitalization.
How do you categorize large mid and small caps?
Mid-cap funds have moderate volatility and moderate liquidity. Small-caps stocks are more volatile and have less liquidity. Large-cap offers a steady and consistent return, and they have less volatility. They have provided an average return of 7% in the past 5 years.
What is large-cap and small-cap?
The meanings of big-cap and small-cap are generally understood by their names, which indicate how valuable they are in terms of market capitalization. Big-cap stocks—also referred to as large-cap stocks—are shares of larger companies. Small-cap stocks, on the other hand, are shares of smaller companies.
What is market capitalization example?
Market cap—or market capitalization—refers to the total value of all a company’s shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. For example, a company with 20 million shares selling at $50 a share would have a market cap of $1 billion.
What is a good market cap for a business?
Find out why size matters when it comes to analyzing companies.
| Type of Stock | Market Capitalization Range |
|---|---|
| Mega cap | More than $200 billion |
| Large cap | $10 billion to $200 billion |
| Mid cap | $2 billion to $10 billion |
| Small cap | $300 million to $2 billion |
What is small-cap and mid-cap?
Market capitalisation: Large-cap companies have a market cap of Rs 20,000 crore or more. Meanwhile, the market cap of mid-cap companies is between Rs 5,000 crore and less than Rs 20,000 crore. Small-cap companies have a market cap of below Rs 5,000 crore.
What is large and mid-cap category?
Large cap companies fall in the top 100 ranks of SEBI’s list of categorization. These companies are known to be well-established players in the market and tend to have a remarkable performance record. Mid cap funds are the ones that invest in equity shares of companies with medium-sized market capitalization.
What is a large and mid-cap?
Large-capitalization firms have over $10 billion in market capitalization, and mid-cap firms fall somewhere in between these two categories (ranging from $2 billion to $10 billion in market capitalization).
What is considered small-cap?
Small-cap stocks are shares of companies with total market capitalization in the range of about $300 million to $2 billion. Small-cap companies have the potential for high rates of growth, making them appealing investments, though their stocks may experience more volatility and pose higher risks to investors.
How do you know if a stock is small-cap?
A small-cap is generally a company with a market capitalization of between $300 million and $2 billion.
What is a midcap?
Mid-cap stocks are shares of companies with total market capitalization in the range of about $2 billion to $10 billion.
What is Blue Chip fund?
Large caps funds are also known as or coined as Blue chip funds. Blue chip mutual funds are a type of equity funds that primarily invest in equity and equity related securities of large cap companies that can be distinguished by adjectives such as large and well-established, renowned and prestigious.
How many stocks are in mid-cap?
As per SEBI’s classification, the companies from rankings 101 to 250 in terms of market capitalization are known as mid-cap companies. Their market cap generally tends to range from Rs. 5,000 to Rs. 20,000 crores.
Who has the biggest market cap?
Apple
Largest Companies by Market Cap
| # | Name | M. Cap |
|---|---|---|
| 1 | Apple 1AAPL | $2.798 T |
| 2 | Saudi Aramco 22222.SR | $2.314 T |
| 3 | Microsoft 3MSFT | $2.164 T |
| 4 | Alphabet (Google) 4GOOG | $1.571 T |
Is a higher market cap better?
The Advantages of Large-Cap Stocks
Investors see them as more attractive on account of their stability and also the fact that they tend to offer consistent dividends. That makes them a better bet for conservative investors.
How do you calculate market cap price?
It is found by multiplying the company’s current market price per share with the total number of outstanding shares. Market Capitalization formula = Current Market Price per share * Total Number of Outstanding Shares.
What is a good PE ratio?
So, what is a good PE ratio for a stock? A “good” P/E ratio isn’t necessarily a high ratio or a low ratio on its own. The market average P/E ratio currently ranges from 20-25, so a higher PE above that could be considered bad, while a lower PE ratio could be considered better.
Is a low market cap good?
In general, small-cap stocks have greater potential for price growth, because the companies themselves still have room to grow. However, they may also be riskier investments, because future performance is always unknown.
What is a good market cap to revenue ratio?
In general, a good price-to-sales ratio (P/S ratio) is one above the P/S ratio of the S&P 500. A company with a P/S ratio higher than that of the S&P 500 is able to show that investors are willing to pay a higher premium for the company’s revenues than for the revenues of the stock market as a whole.