Alphabet Market Capitalization vs. Retained Earnings Fundamental AnalysisAlphabet is one of the top stocks in retained earnings category among related companies. It is one of the top stocks in market capitalization category among related companies creating about 9.59 of Market Capitalization per Retained Earnings. Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.Market Capitalization is total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
In most publications or references market cap is broken down into the mega cap, large cap, mid cap, small cap, micro cap, and nano cap. Market Cap is a measurement of business as total market value of all of outstanding shares at a given time, and can be used to compare different companies based on their size.Alphabet is one of the top stocks in market capitalization category among related companies. Market capitalization of Search Cloud And Integrated IT Services industry is currently estimated at about 1.07 Trillion. Alphabet totals roughly 824.45 Billion in market capitalization claiming about 77% of equities listed under Search Cloud And Integrated IT Services industry.