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Market capitalization (market cap) is the total market value of a publicly traded company's outstanding shares, calculated by multiplying the share price by the number of shares. It reflects the market's current view of the company's value. Valuation, on the other hand, is an estimate of a company's overall worth based on various factors like assets, earnings, and future growth potential, using methods such as discounted cash flow or comparable company analysis. While market cap is a straightforward metric for public companies, valuation provides a broader, often more subjective estimate applicable to both public and private companies.

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