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Capitalization in itself is meaningless. If you have 50% of NVidia outstanding shares, and you try to sell 10% of that, the capitalization would crater. What r
by TheAlchemist 3y ago
Capitalization in itself is meaningless. If you have 50% of NVidia outstanding shares, and you try to sell 10% of that, the capitalization would crater.
What really counts is the profit. It is pretty huge now, but not 'that' huge (at least yet).
- creer 3y agoTry and buy 10% and see what happens! Your point stands but in both directions: The market cap is not "the value of the company" as in, you can neither buy it or sell it at that price.
- mortehu 3y agoHistorical acquisition premiums give you a distribution of what you can expect to pay for the whole company given the market cap.