IS MARET CAPITALIZATION THE SAME AS MARKET VALUE?

[629]

IN THE STOCK MARKET, MARKET CAP IS (SHARE PRICE) X (OUTSTANDING PRICE).
IN REAL ESTATE MARKET VALUE IS PRICE OF A HOME BEING SOLD FOR.

TAKE FACEBOK ITS MARKET CAP IS 171 BILLION. DOES THIS MEAN ITS THE SAME AS MARKET VALUE. IF SOMEONE WANTED TO COMPLETELY PURCHASE FACEBOOK DOES IT MEAN ITS WORTH 171 BILLION?

IF MARET CAP IS THE SAME AS MARET VALUE, CAN SOMEONE EXPLAIN TO ME HOW FACEBOOK (FB) 171 BILLION IS WORTH MORE THEN CITIGROUP © 152 BILLION?

FACEBOOK (FB)
REVENUE 7.8 BILLION
OPERATING INCOME 2.8 BILLION
NET INCOME 1.5 BILLION
MARKET CAP 171 BILLION

CITIGROUP ©
REVENUE 76.3 BILLION
OPERATING INCOME 19.4 BILLION
NET INCOME 13.6 BILLION
MARKET CAP 152 BILLION

I DONT THINK MARKET CAP IS THE SAME AS MARKET VALUE. THE REVENUE AND PROFITS OF THE TWO DONT ADD UP FOR FACEBOOK TO BE WORTH 19 BILLION MORE THEN CITIGROUP. CITIGROUP MAKES ABOUT MORE 10 TIMES REVENUE AND 9 TIMES MORE PROFIT THEN FACEBOOK.

IF I CAN GET SOME EXAMPLES/EXPLAINING THE DIFFERENCE BETWEEN THE TWO, IT WILL BE GLADLY APPRECIATED. THANK YOU.

[cactusgene]

There are many different valuation methods. But the market cap is still the best, because that is the amount investors are willing to pay for the company.

[Bentley]

No, though they are related they are different. The market cap is the most useful/accurate, but as of all valuation methods, others have their uses. Hope i helped

[David]

Yes, they are used interchangeably. The term should not be confused with a company's "capitalization," which is a financial statement term that refers to the sum of a company's shareholders' equity plus long-term debt.

Generally speaking, market cap represents the market's estimate of the "value" of the company. To calculate the total market value of a company, you actually need to add the market value of any of the company's publicly traded bonds.

"Big" has also been believed to have less risk while "small" has implied more risk, but, as evidenced by Enron, this is not a good assumption to make, and neither is it a good assumption to make about revenues.

The enterprise value - or EV for short - is an indicator of how the market attributes value to a firm as a whole. Enterprise value is a term coined by analysts to discuss the aggregate value of a company as an enterprise rather than just focusing on its current market capitalization. It measures how much you need to fork out to buy an entire public company. When sizing up a company, investors get a clearer picture of real value with EV than with market capitalization.

Why doesn't market capitalization properly represent a firm's value? It leaves a lot of important factors out, such as a company's debt on the one hand and its cash reserves on the other. Enterprise value is basically a modification of market cap, as it incorporates debt and cash for determining a company's valuation.
http://www.investopedia.com/articles/fun...031004.asp

The enterprise value of FB is $160 billion, while that of Citigroup is actually a negative number: minus $30 billion.
http://finance.yahoo.com/q/ks?s=C+Key+Statistics