Stock Price versus Market Capitalization of a Company

[Music]
welcome to watchmojo.com today’s
business school bit is taking a look at
the difference between the stock price
of a company and its market
capitalization people always ask me
what’s the most important thing to look
at when you’re trying to look at the
value of a company is it the stock price
and the answer is no not at all the
stock price doesn’t really mean anything
and the reason for that is that there’s
always another issue to consider which
is how many shares outstanding a company
has trading on a given day so to find
the value of a company what you need to
do is take the stocks outstanding of a
firm and multiply it by the stock price
that would give you the market value of
the company also known as the market
capitalization so when it comes to
finding out what the value of a company
is disregard the stock price and just
take a look at market value and that has
been today’s business school bit on
watchmojo.com