- (1) The process of imputing a value to an income stream by dividing the annual net income before income taxes and depreciation by a rate of return expressed as a decimal. This process is used in real estate lending and appraisals.(2) The total of, or the mix between, a corporation's shareholders' equity and its long-term debt.(3) The process of reflecting a long-term, noncancelable lease on the lessee's balance sheet. American Banker Glossary————
* * *capitalization cap‧i‧tal‧i‧za‧tion [ˌkəptlaɪˈzeɪʆn ǁ -əˈzeɪ-] also capitalisation noun [uncountable] FINANCE1. the total value of a company's shares:
• The company's capitalisation has increased to $81.5 billion.
• There were strong gains in large capitalization shares such as shipbuilding and steel companies.
• The early drop wiped around £800 million off the company's market capitalisation.2. the total value of all the shares on a stockmarket at a particular time:
• Share prices are so low that the total market capitalization of the Seoul stock exchange last week amounted to only 66,000 billion Won.
* * *The total market value of a company's issued share capital. Calculated as the number of shares multiplied by the price of one share.
* * *capitalization UK US (UK also capitalisation) /ˌkæpɪtəlaɪˈzeɪʃən/ US /-ṱəl-/ noun [S or U] FINANCE, STOCK MARKET► (also cap, market cap, market capitalization) the total value of a company's shares on a stock market: »
The company's capitalization collapsed by half to $32 billion.► the total value of shares in a stock market or a number of stock markets: »
This year's IPO volume is only 1.9% of the total capitalization of the Nasdaq, New York, and American stock markets.
Financial and business terms. 2012.