How does a companys potential market cap affect share price?
As I understand it, market cap is the perceived worth of a company to the market. Its derived from share price and shares outstanding, and Im curious if it can be correlated to what share price a stock may rise to. If a stock is trading at $0.30 and has 3B shares outstanding, I would think that by examining its market cap at various share prices, one could determine how much potential share price growth is reasonable. In other words, with 3B shares outstanding, its current market cap $900M. This is reasonable for understanding its business. But to assume it could reach $1 or even $1.5 wouldnt make sense.