Thursday, July 6, 2017

equities - Correct Alphabet (Google) market cap calculation?


Given the definition: Market capitalization (market cap) is the total market value of the shares outstanding of a publicly traded company; it is equal to the share price times the number of shares outstanding.


I find it quite puzzling to find different numbers everywhere for Google's (now renamed Alphabet) market capitalisation. I have summarised my findings in this Google sheet (https://docs.google.com/spreadsheets/d/1C8sSp7Kf3wdiiYFHCGM2I3qvjESbLjZR04OCFZHBDi0/edit?usp=sharing) hope you can all access it.


It ranges from the totally wrong for Market Cap (see CNBC), to inconsistent (see Nasdaq, WSJ and Yahoo finance) to differences in number of shares (Google finance and Bloomberg.com don't seem to agree on the number of outstanding shares). My aim is first to understand what is the right number for outstanding shares and market cap and second what is the right "price" for the Class B shares that are unlisted.



Data in the sheet is as of Feb 4th, 2016 11AM Sydney time (so based on closing prices, way after market closes).




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