Support Market Cap and Implied Market Cap
Conor MacNeil
open
M
Maria Karpenko
under review
Hi Niels! Thanks for writing in.
We display the Implied Market Capitalization for Symbotic Inc. When a company has an Implied Market Cap, we show this instead of the Market Cap.
Below is the breakdown of the Implied Market Capitalization and Enterprise Value for SYM.
In the future, we plan to include both Market Cap and Implied Market Cap to provide clearer information for certain companies.
P
Pink Egret
Maria Karpenko Thanks, given that the class-V shares can be converted into class-A shares, they should be included in the total market cap calculation, which is what the implied market cap seems to do. However, this means that the current EV/ Sales and P/ Sales metrics are wrong, as well as the normal market cap calculation.
M
Maria Karpenko
Pink Egret: we will investigate this further and provide you with an update shortly.
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Maria Karpenko
Pink Egret: hi! Our data source confirmed that the company has a UP-C capital structure with the following components:
Class A Common Stock: The only trading component, participating in the company's earnings.
Class V-1 Common Stock: Non-trading component, not participating in earnings.
Class V-3 Common Stock: Non-trading component, not participating in earnings.
Opco Units: A minority interest component, non-trading.
According to CIQ, "only the Class A shares participate in the company's earnings, and therefore, only these shares are included in the Basic Earnings Per Share calculation. As a result, Class V shares, which have no economic rights in the company, aren't considered in the calculation of Market Cap.
However, Class V shares are issued in connection with Opco Units, which represent a minority interest and are included in the Implied Market Cap metric.
Only the common stocks participating in the company's earnings are displayed and used for the Market Cap calculation. The Implied Market Cap/Shares Outstanding metric includes non-controlling interest (minority interest) shares, which don't have economic rights but may be converted into a component with economic rights in the future.
As a policy, S&P Global Market Intelligence doesn't include minority interest share numbers in the standard Market Cap calculation, as these shares don't participate in earnings. Instead, they are included in TEV by adding to the market capitalization (at book value, not market value). Including minority interest in market capitalization would result in double counting in TEV.
To align with market practices, CIQ has introduced a new metric, Implied Market Cap, which includes non-controlling interest shares, reflecting the approach some financial analysts take when calculating market cap.
Here are calculations of Market Cap and Implied Mark Cap:
Market cap: 2,259.3 m (103.7 m shares outstanding * 21.77 share price)
Implied market cap: 12,748 m (585.56 implied shares * 21.77 share price)"
We apologize for any confusion and plan to add both Market Cap and Implied Market Cap to provide clarity in the future.