Calculation Behind Market Capitalization(TR.F.MktCap) and Company Market Cap(TR.CompanyMarketCap)

In order to Calculate Enterprise Value of Company , I would need Market Cap of the company.
Since there is huge difference in MCAP Calculation between 2 Data Items ('TR.F.MktCap', and 'TR.CompanyMarketCap' ) I need the formula or caluculation behind the two MCAP Calculation . Which would help me in my further analysis.
Thank you,

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Accepted answers

raksina.samasiri

Hi @BlackBird ,

First of all, the difference between TR.F.MktCap and TR.CompanyMarketCap as per the definition is:

TR.CompanyMarketCap - The Company Market Capitalization represents the sum of market value for all relevant issue-level share types. The issue-level market value is calculated by multiplying the requested shares type by the latest close price. This item supports Default, Free Float, and Outstanding shares types. The default shares type is the most widely reported outstanding shares for a market and it is the most commonly Issued, Outstanding, or Listed shares.
TR.F.MktCap - Market Capitalization [Mcap] is the total market value of the default shares (outstanding, listed, OR issued) of a publicly-traded company. The values are sourced from the strategic Mcap B where it is calculated as Price Close [TR. PriceClose] * Company Shares [TR.CompanySharesOutstanding] OR Price Close [TR.PriceClose]* Company Shares [TR.CompanySharesOutstanding(ShType=OUT)] and if not available in Mcap DB it will be calculated as Price Close [TR.PriceClose] * Common Shares - Outstanding - Total [TR.F.ComShrOuts Tot]. This is calculated at a Company level. For depository receipt-related instruments the Market Capitalization [TR.F.MktCap] value will be adjusted using the depository receipt ratio. The data item is calculated for all periodicities. It is applicable to all industries.

In addition, TR.CompanyMarketCap is a dairy-based market cap item, that uses daily price close data and the latest share numbers in the calculation. TR.F.MktCap is a period-end-based item, that uses price close data and share number on the given period end date.

Finally, after checking, it is suggested that we use TR. rather than TR.F. as TR.will have consistent data from Refinitiv Financials.

I hope this information helps. However, as the moderators on this forum do not have deep expertise in every type of content available through Refinitiv products. Such expertise is available through Refinitiv Helpdesk, which can be reached via MyRefinitiv.

All comments

raksina.samasiri

Hi @BlackBird ,

First of all, the difference between TR.F.MktCap and TR.CompanyMarketCap as per the definition is:

TR.CompanyMarketCap - The Company Market Capitalization represents the sum of market value for all relevant issue-level share types. The issue-level market value is calculated by multiplying the requested shares type by the latest close price. This item supports Default, Free Float, and Outstanding shares types. The default shares type is the most widely reported outstanding shares for a market and it is the most commonly Issued, Outstanding, or Listed shares.
TR.F.MktCap - Market Capitalization [Mcap] is the total market value of the default shares (outstanding, listed, OR issued) of a publicly-traded company. The values are sourced from the strategic Mcap B where it is calculated as Price Close [TR. PriceClose] * Company Shares [TR.CompanySharesOutstanding] OR Price Close [TR.PriceClose]* Company Shares [TR.CompanySharesOutstanding(ShType=OUT)] and if not available in Mcap DB it will be calculated as Price Close [TR.PriceClose] * Common Shares - Outstanding - Total [TR.F.ComShrOuts Tot]. This is calculated at a Company level. For depository receipt-related instruments the Market Capitalization [TR.F.MktCap] value will be adjusted using the depository receipt ratio. The data item is calculated for all periodicities. It is applicable to all industries.

Finally, after checking, it is suggested that we use TR. rather than TR.F. as TR.will have consistent data from Refinitiv Financials.

BlackBird

Hello,
Thank you , This helped.

william.harries

Why does "TR.CompanyMarketCap" using "outstanding" shares differ from the latest close price multiplied by the common shares outstanding per the latest 10Q?

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