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Red Hat Inc (NYSE:RHT)
Market Cap
$11,548 Mil (As of Today)

Market cap is the total market value to buy the whole company. It is equal to the share price times the number of shares outstanding. Red Hat Inc's share price for the quarter that ended in May. 2014 was $50.12. Red Hat Inc's shares outstanding for the quarter that ended in May. 2014 was 189 Mil. Therefore, Red Hat Inc's market cap for the quarter that ended in May. 2014 was $11,548 Mil.

Red Hat Inc's quarterly market cap increased from Nov. 2013 ($8,878 Mil) to Feb. 2014 ($11,191 Mil) but then declined from Feb. 2014 ($11,191 Mil) to May. 2014 ($9,490 Mil).

Red Hat Inc's annual market cap increased from Feb. 2012 ($9,528 Mil) to Feb. 2013 ($9,807 Mil) and increased from Feb. 2013 ($9,807 Mil) to Feb. 2014 ($11,191 Mil).

Enterprise value is the theoretical takeover price. It is more comprehensive than market capitalization (market cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents. Red Hat Inc's enterprise value for Today is $10,746 Mil.


Definition

Market cap is the short version of market capitalization. It is the total market value to buy the whole company. It is equal to the share price times the number of shares outstanding.

Red Hat Inc's Market Cap for the fiscal year that ended in Feb. 2014 is calculated as

Market Cap (A: Feb. 2014 )=Share Price (A: Feb. 2014 )*Shares Outstanding (A: Feb. 2014 )
=58.99*189.71
=11,191

Red Hat Inc's Market Cap for the quarter that ended in May. 2014 is calculated as

Market Cap (Q: May. 2014 )=Share Price (Q: May. 2014 )*Shares Outstanding (Q: May. 2014 )
=50.12*189.34
=9,490

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Market cap is not the real price you pay for a company. If you buy the company and become its owner, you become the owner of the cash the company has, and you also assume the company’s debt. The real price you pay is the Enterprise Value.

Warren Buffett uses the ratio of total market cap of all public traded companies over GDP to measure if the market is expensive. As of April 2012, the US total market cap is about $14.7 trillion, while the US GDP is about $15 trillion. The market was modestly overvalued.


Related Terms

Shares Outstanding


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Red Hat Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
mktcap 2,0275,5844,3373,9462,8935,2557,9699,5289,80711,191

Red Hat Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
mktcap 9,5289,91110,8279,5589,8079,1519,5638,87811,1919,490
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