What is Market Cap? How to Find the Value of a Company

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  • เผยแพร่เมื่อ 3 ต.ค. 2024

ความคิดเห็น • 176

  • @stansburyclarice4968
    @stansburyclarice4968 ปีที่แล้ว +691

    The key to big returns is not big moving stocks. It's managing risk in relationship to reward. Having the correct size on and turning your edge as many times as necessary to reach your goal. That holds true from long term investing to day trading

    • @susannabruemmer3683
      @susannabruemmer3683 ปีที่แล้ว

      May I ask which stocks are good? I've been looking at a few different ones but want others' opinions as well

    • @presley492
      @presley492 ปีที่แล้ว +1

      what i think you need is a Financial Adviser, who can help you get in and out of any stock you buy at any time and you'd sure be in Profit

    • @susannabruemmer3683
      @susannabruemmer3683 ปีที่แล้ว

      who would you recommend?

    • @presley492
      @presley492 ปีที่แล้ว +1

      *TERESA JENSEN WHITE,* That's whom i work with

    • @susannabruemmer3683
      @susannabruemmer3683 ปีที่แล้ว

      I have seen loads of news of *TERESA JENSEN WHITE* on the internet, she must really be that good for she to be talked about in such a way. Is she on TH-cam? please how do I reach her

  • @GhanYt
    @GhanYt ปีที่แล้ว +642

    After selling a couple homes in 2022, I'm anticipating a housing crisis in order to buy inexpensively. As a backup plan, I've been thinking about purchasing stocks. What recommendations do you have for the best time to buy? On the one hand, I keep reading and seeing trader earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?

    • @bahijarhafiri
      @bahijarhafiri ปีที่แล้ว

      The top experts, however, have access to confidential information and data that is not made available to the broader public. Being knowledgeable enough to use them successfully is quite another. Big returns, not changing stochastics, are the key. Rewards and risks must be balanced. To reach your aim, pick the right size and turn your edge as often as necessary.

    • @bahijarhafiri
      @bahijarhafiri ปีที่แล้ว

      I require suggestions on how to restore my portfolio and create more effective strategies in light of the huge declines. Where can I locate this instructor?

    • @bahijarhafiri
      @bahijarhafiri ปีที่แล้ว

      Thank you so much! Found her webpage and left a message. Hopefully, she responds.

  • @arturostyles1711
    @arturostyles1711 3 ปีที่แล้ว +39

    stock is an investment that represents a share, or partial ownership, of a company. Stocks are one of the best ways to build wealth

    • @ahmedmeer6103
      @ahmedmeer6103 3 ปีที่แล้ว +2

      For me stock is outdated,I enjoy crypto with my best broker that makes huge profits

    • @khanram3391
      @khanram3391 3 ปีที่แล้ว

      Good investment brings a good
      Satisfaction, good write up they don't understand...The reason for investment

    • @yasmincarvalho181
      @yasmincarvalho181 3 ปีที่แล้ว

      You're all right

    • @kabirmyra6031
      @kabirmyra6031 3 ปีที่แล้ว

      For me employ what brings gains...I employed
      Cryptocurrency trading

    • @maryrodriquez8834
      @maryrodriquez8834 3 ปีที่แล้ว

      Yes exactly, crypto is the world trending online
      Investment now, that's what The news said and lots of people are involved

  • @dayneodendaal4772
    @dayneodendaal4772 4 ปีที่แล้ว +18

    I really appreciate videos like this that simply investing and financial metrics for the masses. So many people are left out of the market due to little to no understanding of how it all works. So for that I say: Thanks to everyone at TMF for the great content!

  • @linuxd
    @linuxd 3 ปีที่แล้ว +2

    I really don't like Motley Fools advertising but I sure appreciate this video

  • @InvestingwithKurt
    @InvestingwithKurt 4 ปีที่แล้ว +45

    Appreciate the breakdown of the terminology. And I fully agree that the financial industry tends to use some complicated terms which can confuse people. I really love the tables! 👌

    • @MotleyFool
      @MotleyFool  4 ปีที่แล้ว +8

      You got it Kurt -- we're all about the KISS principle. Keep it simple, stupid. Haha.

  • @conorpaulpurcell3403
    @conorpaulpurcell3403 4 ปีที่แล้ว +8

    These are awesome explainer vids Dylan. Also love seeing the Fool's roundtable conversations and looks like you guys got in some new camera tech too. Keep it up!

    • @MotleyFool
      @MotleyFool  4 ปีที่แล้ว +1

      Hey Conor, Dylan here. Thanks! We're putting more and more behind TH-cam because it has proven to be a great way to serve existing members and a fun way to teach folks who don't know much, so there will definitely be more good stuff to come :).

    • @conorpaulpurcell3403
      @conorpaulpurcell3403 4 ปีที่แล้ว

      @@MotleyFool Yes, TH-cam is awesome for education and I really see you guys as educators.

  • @MegaFutbol14
    @MegaFutbol14 4 ปีที่แล้ว +11

    Really good video! Could we have one explaining how to actually value a company and compare it to its stock market valuation? thank you.

    • @PaulOsbornesChannel
      @PaulOsbornesChannel 4 ปีที่แล้ว +3

      Anyone who can successfully do this will become a millionaire very quickly.

    • @scottmenhennet9933
      @scottmenhennet9933 3 ปีที่แล้ว +1

      Have a crystal ball

  • @renecarrillo3758
    @renecarrillo3758 3 ปีที่แล้ว +1

    Great video. The last example comparing two companies should have been introduced earlier on. It solidified the usefulness of the market cap concept.

  • @petefrislid7219
    @petefrislid7219 2 ปีที่แล้ว

    Been tracking and trading the gap up short pattern, Thanks Dux!

  • @Omar-jy1gr
    @Omar-jy1gr 7 หลายเดือนก่อน

    Outstanding explanation!
    Thanks!

  • @cboachie30
    @cboachie30 4 ปีที่แล้ว +1

    Great breakdown, simple & straight to the point. Thank you.

  • @lhistoirenimp4537
    @lhistoirenimp4537 ปีที่แล้ว

    Thanks a lot! Very clear!!

  • @obisraelngawani1373
    @obisraelngawani1373 7 หลายเดือนก่อน +1

    s it possible to sell and buy in dexcreenner and earn money ?
    in a short term time frame like in forex I trade, is the market move in a consolidation or in a trending direction?

  • @truecanadian241
    @truecanadian241 4 ปีที่แล้ว +1

    Thanks buddy that was very helpful and simple 👍👍👍

  • @timitamifalana535
    @timitamifalana535 ปีที่แล้ว

    I love mega-cap stocks.

  • @Mamun-vt2le
    @Mamun-vt2le 3 ปีที่แล้ว +1

    I am little bit confused, when share price will be up market cap will also increased. Then small cap become mid cap company.

  • @stanleywells7479
    @stanleywells7479 2 ปีที่แล้ว

    GTE is the one I want to know more about

  • @fogk7613
    @fogk7613 2 ปีที่แล้ว

    sometimes, you will need this, because a company's listed market cap just doesnt make sense

  • @orlandominichiello
    @orlandominichiello 2 ปีที่แล้ว

    So buy high market value stocks that pay dividends?

  • @freedomisEexpensive-08
    @freedomisEexpensive-08 ปีที่แล้ว +4

    I have been following your videos for Months now and i have been wanting to make outstanding progress with my investment. Truly, The SP500 is a self-correcting portfolio, Following this principles, i want suggestions as to a way to protect my portfolio of $580k.

    • @MrGravity304
      @MrGravity304 ปีที่แล้ว +2

      Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals

    • @MiddleclassAmerican-7220
      @MiddleclassAmerican-7220 ปีที่แล้ว +1

      Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

    • @NotyourBusiness-urto6
      @NotyourBusiness-urto6 ปีที่แล้ว +2

      @@MiddleclassAmerican-7220 I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

    • @MiddleclassAmerican-7220
      @MiddleclassAmerican-7220 ปีที่แล้ว +4

      There are a lot of independent advisors you might look into. But i work with Nicole Desiree Simon and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her

    • @NotyourBusiness-urto6
      @NotyourBusiness-urto6 ปีที่แล้ว

      @@MiddleclassAmerican-7220 Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

  • @carloscastanyeda
    @carloscastanyeda 3 ปีที่แล้ว +1

    So doge is medium cap?

  • @brentonwarren7830
    @brentonwarren7830 3 ปีที่แล้ว

    BITF aka BFARF. Mind blowing growth for a new company. Read there last quarter report and know it’s too late to catch that train

  • @sarefeen786
    @sarefeen786 3 ปีที่แล้ว

    Dear brother a nice presentation indeed.

  • @esteemariejulie9480
    @esteemariejulie9480 3 ปีที่แล้ว

    Thank you Dylan, great video!

  • @ActionStudioVideos
    @ActionStudioVideos 3 ปีที่แล้ว +1

    Cute video, but I think you meant to say that Market Cap = Company Price, not it's worth.

  • @keepingitsimple88
    @keepingitsimple88 3 ปีที่แล้ว +2

    is it possible to determine the ceiling price, the maximum price the share price can go for a stock ?

    • @afromatrix
      @afromatrix 3 ปีที่แล้ว

      That's my same question

    • @IntelligentStockInvesting
      @IntelligentStockInvesting 3 ปีที่แล้ว +1

      There is no ceiling. Usually, when stock prices get super high the company will do a stock split. In your account, you will have for example 4 times the number of shares, but each share will be priced 1/4 of what it was the day before. This makes the shares more accessible for everyone to buy them, but doesn't change anything about the fundamentals.

    • @keepingitsimple88
      @keepingitsimple88 3 ปีที่แล้ว

      @@IntelligentStockInvesting Ok Thanks Richard

  • @Zenbeau
    @Zenbeau 2 ปีที่แล้ว

    I'm looking for a metric i'm not sure what it's called in the stocks world but I initially thought it was market cap, but it's not. The metric i'm looking for is "how do you know how much money has been put into a stock?"

  • @alexander61516
    @alexander61516 ปีที่แล้ว

    Question.
    Why is Apples market cap ($3Trillion) so much greater than Black Rock ($100 Billion) when black Rock has its hands in so many companies and industries around the world?

  • @SmudgeOfficialUK
    @SmudgeOfficialUK 4 ปีที่แล้ว

    Great video! Cheers guys!

  • @TruthDefender
    @TruthDefender 3 ปีที่แล้ว

    great video - subscribed!

  • @marshy2561
    @marshy2561 3 ปีที่แล้ว +1

    6:15 - can u please explain what you mean about the company splitting up in more ways? Thanks

    • @loudnlittv3481
      @loudnlittv3481 3 ปีที่แล้ว +1

      If company A have 100 shares, each share is equal to 1% of the company, If company B has 1000 shares, they have split their company up in more ways (1000>100) and each share is worth 0.1% of the company

  • @rafalsuski4514
    @rafalsuski4514 3 ปีที่แล้ว

    Thank you

  • @marco_robert
    @marco_robert 2 ปีที่แล้ว

    Hi.
    May I know how can we calculate it:
    If 2 specific cryptocurrencies have a specific market cap(chosen by us, not the real one) then investing an amount in USD would give us this much price...
    I hope you understand my question.
    Thank you

  • @3EBstudio
    @3EBstudio 2 ปีที่แล้ว

    Rivian please

  • @sebdimarco
    @sebdimarco 3 ปีที่แล้ว

    Great Clip, j im just stuck , just dont understand where in the begining youve mentioned Market cap = how many shares a company has issued and then when using the example of the 2 companies youve mentioned to get the market cap you need to calculate the outstanding shares, can plse verify is it shares issued or shares outstanding? Thankyou

  • @brewstanton9844
    @brewstanton9844 3 ปีที่แล้ว

    thanks for good info

  • @pamelabeauty1980
    @pamelabeauty1980 2 ปีที่แล้ว +16

    Mrs Mary is legit and her method works like magic I keep on earning every single week with her new strategy.

    • @pamelabeauty1980
      @pamelabeauty1980 2 ปีที่แล้ว

      I receive my profit every 5 day's thanks so much.

    • @egonschutzenberger65
      @egonschutzenberger65 2 ปีที่แล้ว

      Yes I'm also a living testimony of expert Mrs Mary.

    • @egonschutzenberger65
      @egonschutzenberger65 2 ปีที่แล้ว

      Mrs Mary has changed my financial status for the best.all thanks to my aunty who introduced her to me?

    • @dorathyabam5196
      @dorathyabam5196 2 ปีที่แล้ว

      Mrs Mary is obviously the best, I invested $3,000 and she made profit of $28,000 for me just in 15 day's, Her success story is everywhere.

    • @halimamusabida2906
      @halimamusabida2906 2 ปีที่แล้ว

      Who's this professional, everyone is talking about? I always see her post on top comment on every TH-cam video I watched.

  • @IncomeBoost42
    @IncomeBoost42 4 ปีที่แล้ว +2

    I like index funds which include small & mid-caps as well, such as the VTSAX (Index funds of US stocks by Vanguard); it captures a good mix of risk, return and sustainable growth potential. Contrast with S&P 500 which has the largest companies around but have historically performed slightly better (9% vs 10% avg annual returns). So, which one would you choose ?

    • @TuEIite
      @TuEIite 4 ปีที่แล้ว

      Neither, do your own work and pick individual stocks to build your own portfolio. That's how you get 20%+ returns a year.

  • @Go4Yourz
    @Go4Yourz 3 ปีที่แล้ว

    What about companies with dual class stock?

  • @aydogduinsaat9543
    @aydogduinsaat9543 3 ปีที่แล้ว

    Wing finance token is a big project and it should be at least 2000 dollars, 520 dollars will come soon.

  • @utopianseeker5493
    @utopianseeker5493 2 ปีที่แล้ว

    Tesla?

  • @markfinnicum2969
    @markfinnicum2969 4 ปีที่แล้ว

    What about TNDM stock?

  • @adriant9580
    @adriant9580 4 ปีที่แล้ว +2

    Hey what do you think about orla mining?

    • @thesteveprichard
      @thesteveprichard 4 ปีที่แล้ว +1

      What is orla mining?

    • @losdog13
      @losdog13 4 ปีที่แล้ว

      Do your own research buddy

    • @adriant9580
      @adriant9580 4 ปีที่แล้ว

      Of course no doubt, but getting another insight from somebody more knowledgeable about stocks can only help me

    • @adriant9580
      @adriant9580 4 ปีที่แล้ว +1

      @@thesteveprichard mining company based in Ontario, canada

    • @losdog13
      @losdog13 4 ปีที่แล้ว

      Stay away. Don’t trust Canadian stocks

  • @AaronHamkins
    @AaronHamkins 3 ปีที่แล้ว

    Animating software used?

  • @jeomeiza
    @jeomeiza 4 ปีที่แล้ว

    Please, Is market cap the value of the company or the value of its traded shares as not 100 percent of the business is usually traded on the stock exchange?

    • @IntelligentStockInvesting
      @IntelligentStockInvesting 3 ปีที่แล้ว +2

      All shares are public but the ones held by people who aren't selling are not currently being traded. So the market cap is the market value of the entire company, even accounting for the shares held by insiders.

    • @jeomeiza
      @jeomeiza 3 ปีที่แล้ว +1

      @@IntelligentStockInvesting Thanks for the response

  • @hitune
    @hitune 3 ปีที่แล้ว

    I subscribed

  • @Layla-bc3kj
    @Layla-bc3kj 2 ปีที่แล้ว

    OH- it was that simple

  • @bsohan5198
    @bsohan5198 3 ปีที่แล้ว +1

    Motley fool is called motley fool because they constantly contradict themselves and make a fool out of themselves...I say this because all your writers say different things about the same stock. One says it's a waste of your money while the other says you can't miss this opportunity. Make up your minds, or just be a fool.

  • @IamJohnnyFan
    @IamJohnnyFan 3 ปีที่แล้ว

    so a higher market cap means that the company has the most shares.

    • @IntelligentStockInvesting
      @IntelligentStockInvesting 3 ปีที่แล้ว

      not necessarily. There's a lot of companies with more shares outstanding than Apple but Apple has the highest market cap right now. check this one out: th-cam.com/video/trucIdrTWso/w-d-xo.html

  • @al1383
    @al1383 3 ปีที่แล้ว +1

    What stops shorts from tanking a stock, accumulating 51% of the cheap shares, and taking control of a company?

    • @IntelligentStockInvesting
      @IntelligentStockInvesting 3 ปีที่แล้ว

      That's an interesting thought experiment

    • @al1383
      @al1383 3 ปีที่แล้ว

      @@IntelligentStockInvesting Take a look at AVGR for example. For around $50M you could be majority owner of a company expecting close to $1B in sales in the next 2-4 years.
      Great investment IMO

    • @IntelligentStockInvesting
      @IntelligentStockInvesting 3 ปีที่แล้ว +1

      @@al1383 It's kind of how Warren Buffett's berkshire came to be. he accumulated enough shares to gain control of a textile manufacturer. I don't think there was a shorting first strategy involved, but it was trading below it's net current asset value and had okay profits at the time

    • @al1383
      @al1383 3 ปีที่แล้ว

      @@IntelligentStockInvesting Interesting.
      It seems real easy to tank a stock by shorting it.. Even bulls want the lowest price available when buying shares.Any purchase below market helps to drop the SP.
      Partners shorting a stock could sell shares back and forth to each other. A penny below market price each time.They could do this endlessly.
      Example, Stock for AAA is selling for $1 a share. Partner A borrows a million shares. He sells 100k at $0.99. and Partner B buys them for $0.99 (after all the shorts need to give the borrowed shares back eventually. Buying and selling shares allows shorts to always have a million shares between them. This will save them if the price rises drastically).
      Partner A continuously sells as Partner B buys them, getting SP down to $0.90.After he sells a million shares Partner B sells (only below SP) while Partner A now buys them. Repeat......Getting SP lower and lower.
      It seems to be a safe way of not getting burned by a sudden SP increase.
      I know I'd be nervous ah shorting a stock. I would want to always have the number of borrowed shares in my possession.

    • @IntelligentStockInvesting
      @IntelligentStockInvesting 3 ปีที่แล้ว

      @@al1383 Ya very interesting! Probably a rule against doing that lol. but you're right theoretically it should work. If the company itself starts buying back shares though you'd have a battle on your hands.

  • @rainmaker704
    @rainmaker704 4 ปีที่แล้ว

    If i could start my dream portfolio today it would have BLK, JPM, LMT, CHD, NESTLE ADR, AMT, NIK, AAPL, AMZN AND O. Etfs i would get would be UFO, HERO, NOBL, WOOD, HACK AND SPDR HEALTHCARE. Great vid!

    • @rainmaker704
      @rainmaker704 4 ปีที่แล้ว

      I've just been buying physical gold and silver lately.

    • @thesteveprichard
      @thesteveprichard 4 ปีที่แล้ว

      I would look for 8 stocks that are increasing revenues per quarter for the last 3 years.

    • @profderek2204
      @profderek2204 4 ปีที่แล้ว

      @@rainmaker704 I'd recommend you get a managed portfolio right away and still move on with your precious metals. I've got a portfolio with some huge 6 figures set to copy the trades of my financial adviser, she's a pro FINRA regulated broker. A genius in wealth management. 30% monthly returns ain't bad at all. If you wouldn't have her manage your funds on contract, you can copy her trades. The choice is yours.

    • @profderek2204
      @profderek2204 4 ปีที่แล้ว

      @@thesteveprichard you speaking of dividend stocks? Well I believe there are better and aggressive approaches to face the market. I prefer to go for growth stocks instead and have your funds diversified carefully. Just a hire a portfolio manager. I have one already and I earn 30% returns monthly. If you'd wanna get in touch, hit me back. Cheers!

  • @precogtrade9099
    @precogtrade9099 4 ปีที่แล้ว

    QYLT

  • @SK_509
    @SK_509 3 ปีที่แล้ว +1

    I thought it was pronounced Mote-lee, not Mot-lee 🤣

  • @traderwannabe2149
    @traderwannabe2149 3 ปีที่แล้ว

    This is more complicated

  • @darkpoetry7771
    @darkpoetry7771 3 ปีที่แล้ว

    ALYI

  • @heyyouwhome9339
    @heyyouwhome9339 4 ปีที่แล้ว

    CEMI

  • @allprofits3092
    @allprofits3092 3 ปีที่แล้ว

    TTCF !!!!

  • @MartyD
    @MartyD 4 ปีที่แล้ว

    NO CAP

  • @mike-f1k
    @mike-f1k 4 ปีที่แล้ว +4

    What I gather from this video is that Market Cap represents the relative SIZE of a company compared to its peers in the stock market - or its 'equity value'. But with stock prices swinging up and down daily-seemingly at the whim of investors-'Market Cap' doesn't always reflect a company's true VALUE. Case in point, how is that TSLA is trading upward of $700 today when just six months ago it was hovering around $200? Did the intrinsic value of the company increase 3X+ over 6 months? Probably not. My question then is how do we "actually find the value of a company" (as the video's title says)?

    • @MotleyFool
      @MotleyFool  4 ปีที่แล้ว +3

      Hey Mike -- Market cap is the company's true value, based on the overall investing community's sense of what it should be worth. Stocks move for a variety of reasons, but any publicly traded company will have its actual value fluctuate by the minute because the stock market is a real-time market.
      For every company there are also thousands of valuations that individuals have worked to on their own thanks to spreadsheets and their own calculations. Those are all theoretical, they're based on assumptions and estimates of where a company could go.
      If you were to aggregate all those, you basically have the current market cap of the company, because all those individual valuations are effectively people's opinions of what something is worth and the value of a company that is publicly listed is generally a reflection of what investors think will happen to that business.
      Sorry if that's a confusing answer, but it's a tricky topic.

    • @mike-f1k
      @mike-f1k 4 ปีที่แล้ว +2

      @@MotleyFool, thanks for the explanation. After reading your reply it does makes sense to me that the actual value would be whatever the market is willing to pay. I guess I'm just skeptical because the "market" doesn't show its work ;-)

  • @jessew5650
    @jessew5650 4 ปีที่แล้ว

    Iq

  • @epidermiuss
    @epidermiuss 3 ปีที่แล้ว

    downvoted cause of motley fool , good otherwise

  • @dannygoode1
    @dannygoode1 4 ปีที่แล้ว

    1st