Nicxie
JF-Expert Member
- Jun 20, 2017
- 22,118
- 17,844
Unaelewa maana ya market capitalization au ndo zile elimu za kuunga.
The market capitalization is the total value of all outstanding shares - basically what you’d have to pay if you wanted to buy out all the current owners.
The valuation is a broader term for answering “what is this company worth?” You can simply say that a company is worth whatever the stock is worth, but sometimes stock prices inflate on hype or crash on bad news and aren’t reflecting the true value of the company’s current assets.
There are many ways investors try to asses the true valuation of a company, looking at all the assets and debts a company has and the strength of their current business
I hope this simple screenshot will answer this composition