Margherita
Thu Jul 25 2024
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7 answers
1785
Is market cap what a company is worth?
Isn't market capitalization simply a reflection of how much a company is worth at a given point in time? It's calculated by multiplying the total number of shares outstanding by the current market price per share, right? But does that truly represent the full value of a company? Could there be other factors at play that are not captured by this metric? After all, a company's worth isn't just about its stock price, but also about its assets, liabilities, earnings potential, and overall business strategy. So, is market cap really the best way to determine a company's true worth?
