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Market Capitalization Index Formula

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Market Capitalization is a measure used to determine the total value of a publicly traded company. Check FAQs

wi M = \frac{Qi \cdot P i}{\sum (x, 0, N, (Qi \cdot P i))}

wi^M - Market Capitalization?Qi - Number of Shares Outstanding of Security?P_i - Price of the Security?N - Number of Securities in the Index?

Market Capitalization Index Example

With values

With units

Only example

Here is how the Market Capitalization Index equation looks like with Values.

Here is how the Market Capitalization Index equation looks like with Units.

Here is how the Market Capitalization Index equation looks like.

0.0625 = \frac{350 \cdot 130}{\sum (x, 0, 15, (350 \cdot 130))}

0.0625 = \frac{350 \cdot 130}{\sum (x, 0, 15, (350 \cdot 130))}

0.0625 = \frac{350 \cdot 130}{\sum (x, 0, 15, (350 \cdot 130))}

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Market Capitalization Index Solution

Follow our step by step solution on how to calculate Market Capitalization Index?

FIRST Step Consider the formula

wi M = \frac{Qi \cdot P i}{\sum (x, 0, N, (Qi \cdot P i))}

Next Step Substitute values of Variables

∴

wi M = \frac{350 \cdot 130}{\sum (x, 0, 15, (350 \cdot 130))}

Next Step Prepare to Evaluate

∴

wi M = \frac{350 \cdot 130}{\sum (x, 0, 15, (350 \cdot 130))}

LAST Step Evaluate

∴

wi M = 0.0625

Market Capitalization Index Formula Elements

Variables

Functions

Market Capitalization

Market Capitalization is a measure used to determine the total value of a publicly traded company.

Symbol: wi^M

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Market Capitalization

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.

Symbol: Qi

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Shares Outstanding of Security

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.

Symbol: P_i

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Price of the Security

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.

Symbol: N

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Securities in the Index

sum

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

Syntax: sum(i, from, to, expr)

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How to Evaluate Market Capitalization Index?

Market Capitalization Index evaluator 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 evaluate 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 evaluate Market Capitalization Index using this online evaluator? To use this online evaluator 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.

FAQs on Market Capitalization Index

What is the formula to find Market Capitalization Index?

The formula of Market Capitalization Index is expressed as 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))). Here is an example- 0.0625 = (350*130)/(sum(x,0,15,(350*130))).

How to calculate Market Capitalization Index?

With Number of Shares Outstanding of Security (Qi), Price of the Security (P_i) & Number of Securities in the Index (N) we can find Market Capitalization Index using the formula - 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))). This formula also uses Summation Notation (sum) function(s).

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Market Capitalization Index Formula

Market Capitalization Index Example

Market Capitalization Index Solution

Market Capitalization Index Formula Elements

Other formulas in Equity category

How to Evaluate Market Capitalization Index?

FAQs on Market Capitalization Index

Variable Name