Market capitalisation or market cap is a simple formula – it is how the value of a company is derived by multiplying the stock price by the number of stocks outstanding. The higher this number the ‘better’, as listed companies tend to start life as small-caps, then grow into mid-caps, and eventually become industry giants and market leaders – the large-caps. Eventually, they become bluechip companies – large companies, employing thousands of people, and the name of the company or the brand becomes a household name across the country.