Market Capitalisation

The total market value of a company's outstanding shares.

Definition

Market capitalisation is the total market value of a company's outstanding shares — the current share price multiplied by the number of shares in issue. It represents what the market collectively values the company at. Assetick calculates and displays market cap in crore on every DSE stock page.

How it is calculated

Market cap equals the current share price multiplied by the number of outstanding securities. Because it uses the live price, it changes throughout every trading day, unlike paid-up capital which is fixed until the company issues or buys back shares.

How to read it

Market cap indicates a company's size and is used to compare companies on a like-for-like basis. Larger-cap DSE stocks tend to be more liquid and less volatile; smaller-cap stocks can move more sharply. It is a size measure, not a valuation judgement on its own.

For DSE investors

Market cap is not published per-company in a crawlable form by the DSE itself, so Assetick computes it from outstanding securities and the latest close. This makes it easy to compare the relative size of any two DSE companies directly on their stock pages.

Frequently asked questions

How is market cap different from paid-up capital?+

Paid-up capital is the face value of issued shares and is fixed. Market cap uses the live market price, so it changes constantly and reflects what investors currently value the company at.

Does a higher market cap mean a better company?+

No. Market cap measures size, not quality or value. A large company is not automatically a good investment, and a small one is not automatically risky — it is one factor among many.

This explanation is for educational purposes only and does not constitute investment advice.