Get to know Market Cap and Examples in Indonesia

In the world of good investment saham or kripto maybe you are already familiar with the term market cap. In Indonesian, market cap is often referred to as "market capitalization".

Generally, the market cap can be used by investors to measure the quality of the investment company.

What is a Market Cap?

Quoted from the page OCBC NISP, market capitalization or market cap is a measure based on the aggregate value of a company. The market cap is usually obtained by multiplying the total amount outstanding shares (shares) of a company outstanding at the price of one share in the market.

When you know the market cap value of a company, you can determine how much total capital must be issued to buy all the shares issued by the company.

The higher the market cap value of a company, the higher the value of the company that trades its shares traded in general.

Types of Market Cap

The Indonesia Stock Exchange (IDX) has classified market cap into three types, here's an explanation of each type!

1. First Liners

First liners are often also referred to as blue chips and you as an investor must be familiar with this term. Generally, companies that are classified as first liners have a market cap value of IDR 10 trillion or more.

Thus, this company is usually hunted by investors and not infrequently blue chip companies such as Bank Centra Asia, Tbk (BBCA) or Astra distribute dividends to their investors.

2. Second Liner

Next up are the second liner or middle caps which are usually used by companies that have a market cap value of under Rp. 10 trillion, or with a value range of Rp. 1 - Rp. 10 trillion. Usually this type is also filled by companies that are developing. One example of a company that is included in the second liner market cap is PT. Bank Bukopin, Tbk (BBKP).

3. Third Liner

The last type of market cap is third liner which has the lowest value, which is under IDR 1 trillion, generally stock price movements in this category are also easier because the price is cheaper. However, you also need to be careful to choose a company that has cheap stock prices or fried prices. An example of a company that is included in the third liner category is Alfa Energi Investama (FIRE).

How to Calculate Market Cap

To find out the value of the market cap, you can calculate it using the market cap formula as below:

Market Cap = Total Shares Outstanding x Price per Share

Example:

A company has a total of 300 million shares outstanding, with a price per share of Rp. 2.000. Then the market cap value of the company is:

Market Cap = 300 million x 2.000 = IDR 600 billion

So the company has a market cap value of Rp600 billion. So, if you want to own all the shares owned by the company, you have to pay an amount of IDR 600 billion.

Indonesian Market Cap

Of course, there are many companies in Indonesia that have a good market cap value that you can use as an investment portfolio later. The largest market caps in Indonesia are companies that have a market cap value of more than Rp. 10 trillion and are included in the blue chip category, including PT Telkom Tbk (TLKM), Bank Central Asia Tbk (BCAA), Astra International Tbk (ASII), Unilever Tbl ( UNVR). 

One of market cap that succeeded in shifting PT Telkom Tbk (TLKM) is PT GoTo Gojek Tokopedia Tbk (GOTO) has a market capitalization value of IDR 431 trillion. Meanwhile, the value of the market cap Bukalapak or PT Bukalapak.com Tbk (BUKA) reached Rp114,39 trillion in 2021.

So, if you have large enough funds, you can buy all shares of companies in Indonesia, of course you need to adjust the capital to the current market cap value.