Outstanding shares method

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Outstanding shares method is a method for determining the cash worth of a firm by multiplying the number of shares outstanding by the market price per share; also called book value, market value, or market capitalization.

Definition

According to the Strategic Management by David and David (15th edition),

Outstanding shares method. A method for determining the cash worth of a firm by multiplying the number of shares outstanding by the market price per share; also called book value, market value, or market capitalization.