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Determining Market Cap

Bala Pitchuka wants to know how companies are classified into different market cap categories

How can one know if a company belongs to large, mid or small market cap category based on its market capitalization? Is there any limit for each category, such as Rs. 1,000 crore for mid-cap, etc?
- Bala Pitchuka

Value Research follows a method of classifying stocks into large, mid and small market capitalizations which are revised every month. This is done by sorting all the listed stocks of BSE in the descending order of market capitalization. The stocks that account for the top 70 per cent of the total market capitalization are classified as large-cap, those between 70 and 90 per cent are classified as mid-caps and those accounting for the last 10 per cent are classified as small-caps. As on November 30, 2008, 58 stocks were classified as large-caps, whose capitalization ranged between Rs. 178089.80 crore to Rs. 8777.32 crore, 177 stocks were mid-cap with their capitalization ranging from Rs. 8521.03 crore to Rs. 9.41 crore and 2791 stocks were small-cap with a capitalization of less than Rs. 8.54 crore.



This article was originally published on January 29, 2009.

Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.

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