What is the difference between FDV and market cap

FDV, or Fully Diluted Valuation, and market cap, or Market Capitalization, are both measures used in finance to assess the value of a company or an asset. However, they are calculated differently and provide different insights.

Market Cap refers to the total value of all a company's shares of stock. It is calculated by multiplying the company's outstanding shares by the current market price of one share. It gives a clear image of a company's size and how the market values it at a given point in time.

On the other hand, FDV or Fully Diluted Valuation refers to the valuation of a company if all shares and convertible securities were exercised. This includes all outstanding stock, as well as options, warrants, and other securities that could potentially be converted into stock. This provides a more comprehensive view of a company's potential total value.

So the main difference is that market cap only considers currently outstanding shares, while FDV also includes potential shares from convertibles.