Business Valuation The size and scope of the firm, its profitability, its potential for expansion, and the market it serves all play a role in a company's worth. To put it another way, it's the price investors are willing to pay to own a stake in the business. Market capitalization can be calculated in a few different methods, but the most popular one is as simple as multiplying the stock price by the total number of outstanding shares. For More Info:- https://www.jointium.com/read-blog/22899_business-valuation.html