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Beginner2 min readValuing Stocks · 6/11

Market Cap: Large, Mid and Small Companies

A EGP 150 share does not make a company big, and a EGP 15 share does not make it small. A company's size on the exchange is measured by market cap, not by the price of one share.

What you will learn

  • Calculate market cap from the share price and the number of shares.
  • Know how companies are split into large, mid and small, and that these limits are not fixed.
The lesson as a short video · 20 seconds · Watch on YouTube
In this lesson

The formula

Market cap = share price × the number of shares outstanding (or the listed share count your data source uses). In other words, what buying every share at the current price would cost. It changes whenever the price changes.

Share price is not company size

Company A trades at EGP 150 with 5 million shares. Company B trades at only EGP 15 but has 200 million shares. Which is bigger?

Company A 150 × 5M High price, few shares 750M
Company B 15 × 200M Lower price, many shares 3,000M
The pricier share belongs to the smaller company: 750 million against 3 billion.

A: 150 × 5 million = EGP 750 million. B: 15 × 200 million = 3,000 million, or 3 billion. The company with the cheaper share is four times bigger.

Large, mid and small

Companies are grouped by market cap. There is no single agreed official split; each source may draw its own lines, and the lines move as the market grows. In the FoudaLens stock screener, the filter is split like this:

1MicroBelow 500M
2Small500M to 2B
3Mid2B to 10B
4LargeAbove 10B
The FoudaLens screener filter limits, in EGP
Four groups by market cap.

Size tells you useful things: large companies' shares usually trade more, while small ones may trade in thin amounts. But that is not a rule, and every stock has its own circumstances.

Watch outNot every share of a company trades. Some may sit with major shareholders who do not sell. The part available for trading is called the free float, and it can be much smaller than the total.

Filter by size

Open the stock screener, choose a market-cap group, and see which companies fall into it.

Check yourself

1. Price EGP 40, 25 million shares. What is the market cap?

40 × 25 million = 1,000 million, or 1 billion.

2. A share costs EGP 200. Can you say the company is large?

Size = price × number of shares; price alone is not enough.

Summary

  • Market cap = share price × number of shares.
  • The price of one share says nothing about company size.
  • The large, mid and small split differs from one source to another.

Related terms

Related lessons

Educational content only, not investment advice. Companies and figures in the examples are invented for illustration.