Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tesla Motors Inc (TSLA) Edges Stryker Corporation (SYK) By A Narrow Margin

Tesla Motors Inc (NASDAQ:TSLA) has been identified as having a higher market capitalization than S&P 500 small cap company Stryker Corporation (NYSE:SYK). While the price of Stryker Corp. stocks remained relatively stable, the surge observed last week in the electric vehicle manufacturer’s stock price might have been responsible for its higher market cap. What makes market capitalization important while talking about stocks is the fact that it measures the true value of a company’s stock compared to the value attributed to it by the stock market?

Tesla Motors Inc (NASDAQ:TSLA)

A company’s market capitalization value decides the category into which it fits. In this case, Tesla Motors Inc (NASDAQ:TSLA) and Stryker Corporation (NYSE:SYK) belong to the mid- to large-cap list. Novice investors, when they look at the stock prices of two companies, come to the conclusion that the company with the higher stock price should be worth more than the other company. This hypothesis is quite erroneous as the value of a company’s stock is not sufficient in itself to determine the worth of the company.

One can determine the worth of a company only by considering the company’s stock price in conjunction with the number of outstanding stocks. And this leads us back to market capitalization. Consider Tesla Motors Inc (NASDAQ:TSLA) and Stryker Corporation (NYSE:SYK). The difference in their stock price is quite huge with the former trading at around $248 and latter at about $81. The market cap of both the companies can be obtained by multiplying the value of a share by the number of outstanding shares. Now, we see that Tesla has a slightly higher market cap of $ 30.78 billion than Stryker Corp. which has a market cap of $30.75 billion.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW

Loading...