ACCA FM Syllabus F. Business Valuations - Market Capitalisation - Notes 2 / 4
This is very straightforward and is often referred to as “Market Cap”
It is calculated as follows:
Share Price x Number of shares
Illustration
Share Price 96c
Share Capital (nominal value 50c) $60million
Solution
96 x (60/.5) = $115.2 million
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Syllabus F. Business Valuations
F4. Efficient Market Hypothesis (EMH)
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Considerations in the valuation of shares and businesses
Syllabus F. Business Valuations
F4. Efficient Market Hypothesis (EMH)