What is the formula for market valuation of a company?

The formula for market valuation of a company is determined by multiplying the number of shares outstanding by the current stock price. This approach gives the total market capitalization, which reflects the total value investors place on the company based on its stock price.

Market capitalization is a key measure as it provides insight into the company's size and financial health from the perspective of the stock market. When investors want to assess the company's worth, they look at how much it would cost to buy all its outstanding shares at the current market price.

In contrast, the other options do not accurately represent how market valuation is calculated. For example, subtracting liabilities from the current stock price does not provide a complete picture of market value. Also, dividing the number of shares by current assets or calculating market share as a percentage of total revenue does not relate directly to determining a company's market valuation.