Capitalization is a measure of value. It shows how to purchase ASTS shares large a company is in the financial world.
Tiers
- Smallest cap: under 300M.
- Small cap: mid small.
- Mid cap: moderate.
- Established cap: tens of billions.
- Global giant cap: hundreds of billions.
Examples:
- Tech: Google.
- Energy: Shell.
- Finance: Visa.
- Healthcare: Pfizer.
What it helps with
- Volume.
- Volatility.
- Diversification.
Limits
- Does not include liabilities.
- Enterprise value is better.
- Different risks.
Dilution and buybacks
- Acquisitions dilute.
- Repurchases decrease shares, increase value.
Investor tips
- Mix blue chips with small cap growth.
- Spread across energy.
- Match with risk tolerance.
Key insight
Market cap is a shortcut, but always combine it with enterprise value. It shapes building a diversified portfolio.
