This is your Green Grosser. On Average, small and mid capitalization or CAP companies, have outperformed large CAP companies over the last fifteen years. What exactly does this mean? The capitalization is calculated by multiplying the price of one share of stock by the number of shares outstanding. This is the total current value of the company. If the value of the company ‘s capitalization is 300 million to 1 billion, it is considered a small cap. If the capitalization is between 1 billions to 10 billion, it is considered mid cap. If the market capitalization is 10 billion dollars or more, the company is large cap. Market capitalization fluctuates over time as stock prices change. The reasons small and mid-cap companies are popular in investment options is because people believe that they have more room for growth or could be undervalued. Before you invest in stock, it is important to consider the the present and future evaluation of the company.