I was doing some basic DD and as a relatively new investor I am stumped by Market Cap. Not what it is, but by how it is calculated. I see many stocks that it doesnt make sense on, for instance International Consolidated Airlines (LON:IAG) has a price of approx 216 gbp with 4.97bn shares outstanding, this yields a market cap of approx $1,063,015,000,000.00, google and Yahoo do not list this as the market cap, rather they choose numbers in and around 10bn, why in and around, because they themselves differ. Nobody can seem to agree on this apparently easy equation.
So given all that I have read it appears to come down to how you measure how many shares there are? I've heard some say to ignore b class shares or take weighted averages of diluted shares. So can someone who is an expert explain this to me as I'm now certain I'm not alone in this confusion.
Mods if this is too basic feel free to delete, I've searched for answers this is a last resort. I think this post may be useful to others in the future.
Submitted March 03, 2021 at 06:07PM by queeflinn https://ift.tt/3rrHTo0
