Reading market cap and valuation together

Market capitalization generally equals share price multiplied by shares outstanding. Share price depends on capital structure: a low-priced share is not necessarily cheap, nor a high-priced one expensive.

P/E compares share price to earnings per share. Distinguish trailing and forward earnings, then consider sector, earnings consistency and expected growth. P/E may not be meaningful for unprofitable firms.

Market caps and P/E ratios in this directory are educational samples, not security valuations. Real research also requires financial statements, cash flow, debt structure and risk disclosures.