Which are the top high marketcap companies in India right now?
As per Equitymaster's Stock Screener, here is a list of the top high marketcap companies in India right now...
- #1 RELIANCE IND.
- #2 TCS
- #3 HDFC BANK
- #4 BHARTI AIRTEL
- #5 ICICI BANK
These companies have been ranked as per their market capitalization. The higher the market cap, the higher the total value of the company.
Of course, there are other parameters you should take into account before forming a hard opinion on the stock valuation.
What is the market cap of a company?
Market cap or market capitalization is the total value of a publicly traded company's outstanding common shares owned by stockholders
Since outstanding shares are bought and sold in public markets, capitalization could be used as an indicator of public opinion of a company's net worth.
How do you calculate the market cap of a company?
The market cap of a company is calculated by multiplying the market price of the company's shares by the number of common shares outstanding.
Market capitalization = Market price per share* No. of common shares outstanding
If X is a listed company with 50,000 shares, each trading at a market price of Rs 100. The market cap of X is 50,000 × Rs 100 = Rs 5,000,000 (Rs 5 million).
What does the market cap of a company tell investors?
Market capitalization is often used to rank the size of companies.
However, it measures only the equity component of a company's capital structure and does not reflect management's decision as to how much debt (or leverage) is used to finance the firm.
A more comprehensive measure of a firm's size is enterprise value (EV), which gives effect to outstanding debt, preferred stock, and other factors.
The market cap is also used in ranking the relative size of stock exchanges, being a measure of the sum of the market capitalizations of all companies listed on each stock exchange.
What are the different levels of market capitalization?
There are three main levels of market capitalization - largecap, midcap and smallcap.
The market regulator defines largecap companies as those listed companies which are ranked from 1-100 in terms of market capitalization.
It defines midcap companies as those that are ranked from 101 to 250 in terms of market capitalization and smallcap companies that rank from the 251st rank.