Market capitalisation
Market basicsShare price multiplied by the number of shares outstanding — the market’s valuation of the whole company.
The real measure of how big a company is. Share price alone tells you nothing.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 12 terms
Share price multiplied by the number of shares outstanding — the market’s valuation of the whole company.
The real measure of how big a company is. Share price alone tells you nothing.
Market capitalisation plus total debt minus cash — the cost of acquiring the whole business.
What you would actually pay, including the debt you inherit.
Free cash flow divided by market capitalisation.
The cash return on buying the whole company. Much harder to manipulate than earnings.
A single number summarising a basket of stocks, in India generally weighted by free-float market capitalisation.
A weighted average is not the typical stock. The NIFTY can close green on a day when most of its constituents fell, because a handful of heavyweights outvote everything else.
Under SEBI’s definition, the 100 largest listed Indian companies by market capitalisation.
Established, liquid, well covered. Falls least in a crash.
Weighting index constituents by their free-float market capitalisation.
An unlabelled momentum strategy — it automatically holds more of whatever has risen.
Companies ranked 101 to 250 by market capitalisation under SEBI’s classification.
Proven businesses still scaling. Meaningfully more volatile than largecaps.
An index of 50 large NSE-listed companies, weighted by free-float market capitalisation.
The default measure of "the Indian market". A weighted average, so the biggest names dominate it.
Market capitalisation divided by book value.
Only compares businesses whose value sits on the balance sheet, and only means something read alongside return on equity.
Companies ranked 251 and below by market capitalisation.
Everything else, from future compounders to shells. Thin liquidity and brutal drawdowns.
An index built on a rule other than market capitalisation.
A factor tilt in index-fund clothing. The name is marketing; the method is a published, mechanical rule you can read.
The proportion of a company’s shares an index treats as publicly available, used to scale its contribution to a free-float weighted index.
In a market with large promoter holdings this can be a small fraction, so a company’s index weight is often far below what its market capitalisation suggests. The company is big; the part the index counts is not.