Name the object and the share count
In our simple model, market cap equals current share price times total shares outstanding. Shares held by one investor are a different quantity: they determine that holding, not the entire company.
All companies and figures are fictional. Use one date, USD and one share class per company. Real outstanding shares need a date and definition; free float, the freely tradable portion, must not automatically replace total shares.
Two companies with different unit prices
A has a USD 80 price and 10 million shares: market cap USD 800 million. B has price 8 and 200 million shares: USD 1.6 billion. One B share costs ten times less, but B’s market cap is twice as large.
We compare nominal unit prices and total cash values on one date. This does not assess business quality, debt, earnings or fair value, and does not recommend B.
| Company | Price, USD/share | Outstanding shares | Market cap, USD |
|---|---|---|---|
| A | 80.00 | 10000000 | 800000000 |
| B | 8.00 | 200000000 | 1600000000 |
Change price with quantity held constant
Only A’s price now changes from USD 80 to 88 while 10 million shares remain outstanding. New market cap is 880 million, up USD 80 million. This is a hypothetical company-value change, not every holder’s cash profit.
For an owner of one share the price change is USD 8 before costs; for 100 shares it is 800. A particular holding’s result requires its own quantity and other terms. Company-wide outstanding shares and personal portfolio quantity must not be mixed.
| State | Price, USD/share | Shares | Market cap, USD |
|---|---|---|---|
| Initial | 80.00 | 10000000 | 800000000 |
| Alternative | 88.00 | 10000000 | 880000000 |
What neither price nor cap establishes
Issuance or cancellation can change shares outstanding; multiple share classes require matching the scope of price and quantity. The fixed 10-million example cannot be applied to those events without new data. That is a separate check rather than another stock-split example.
Market cap is not cash in the company, enterprise value including debt, or a return forecast. Comparing dates or currencies requires an explicit basis. “Price 8 means better value” does not follow from the formula.
Check a third company
Fictional C has a USD 20 price and 50 million outstanding shares. What is its market cap, and is it larger than B’s?
Answer: 20×50000000 = USD 1000000000. One billion is below B’s 1.6 billion even though C’s unit price is higher. Neither calculation is an investment valuation.
Exact symbol for a chart, share count for a separate calculation
Before reading a chart check symbol, exchange, currency and date. Student Wyckoff helps examine a selected symbol’s price history. The markets directory does not promise market-cap data, share counts or a fundamental screener; obtain those inputs separately.
- Separate unit price, own holding and company total.
- Check date and scope of shares outstanding.
- Do not treat a lower price as proof of undervaluation.
Primary sources
Sources explain the mechanics and limitations; the editorial examples use invented numbers rather than market quotations.
Your next practical step
Use the markets directory to choose an exact symbol and exchange, then continue to the first-price-chart guide. Calculate market cap separately using a confirmed outstanding share count.
Open the markets directory ↗