What Is Intuit Market Capitalization and Why Does It Matter?

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Elena

07/06/2023
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When you manage a business, the market capitalization, also called the market cap, is something you should keep track of regularly. The market cap of a publicly listed company refers to the overall value of that company.

Most of the time, you can calculate a company’s market cap by multiplying the amount of outstanding shares and the price of each share. As of May 2023, the Intuit market capitalization is $121.83 billion. Let’s take a look at the phenomenon a little closer.

Just the Basics

As of May 2023, the market cap enjoyed by Intuit means they are the 100th most valuable company, but it hasn’t always been that way. Most companies that are publicly listed have market cap numbers, and it isn’t difficult to figure out some of the name-brand companies that sit at the top of the list.

While this number isn’t the only number that helps determine a company’s success, it is still important.

The market cap is especially important to investors because the number represents what their stock is worth on the open market. Many times, potential investors will look at this number before deciding for sure whether they should invest in a particular company.

With this number, potential investors can compare certain factors of various companies, including their size, risks, and growth potential.

Who Is Intuit?

Intuit Inc. is a business software company located in the U.S. It specializes in financial software and makes products that help people prepare their taxes, monitor their credit, manage accounting for their small business, and keep in touch with their customers through organized email campaigns.

Some of their products include Credit Karma, Mailchimp, and QuickBooks.

The market cap for Intuit has changed quite a bit in the past 20 years or so, with the numbers looking like this:

  • January 2005: $7.23 billion
  • February 2006: $8.46 billion
  • March 2007: $9.37 billion
  • January 2008: $10.1 billion
  • January 2010: $9.37 billion
  • January 2011: $14.31 billion
  • February 2012: $17.06 billion
  • February 2013: $19.11 billion
  • January 2014: $20.77 billion
  • January 2015: $24.79 billion
  • February 2018: $42.73 billion
  • January 2020: $73.04 billion
  • January 2021: $98.99 billion
  • January 2022: $151.44 billion
  • January 2023: $118.72 billion
  • May 2023: $121.83 billion

Naturally, if you look at the numbers throughout the years, it’s easy to see the highs and lows when it comes to the market cap number, including around the time COVID hit.

For example, in January of 2020, their market cap was $73.04 billion, peaking at $183.48 billion in December of 2021 but dropping down to $116.91 billion in May of 2022. Nevertheless, its current number is more than respectable.

Why Is Market Capitalization Important?

Market capitalization is important when comparing companies because it gives potential investors some important information that makes it easy to compare one company with another. As a rule, market caps are divided into three categories, which include:

  • Large-cap: This includes well-known companies that are generally mature and have a market value of at least $10 billion.
  • Mid-cap: These are companies with market values that are $3-10 billion and which are expected to grow rapidly in the future.
  • Small-cap: This includes companies with a market value of less than $3 billion; they tend to be fairly new companies serving niche markets.

Once again, you can get the market cap of a certain company when you multiply the current price of their stock by the number of outstanding shares they have. This means that if a company issues one-million shares of their stock that are trading at $50 each, that company’s market cap is $50 million (one-million times $50).

The market cap of a company often correlates with their stage of development. Large-cap companies are viewed as more conservative but also safer, since most of them have been in business a while.

Because of this, many people consider mid-cap companies to offer more growth potential. This is because many people assume that large-cap companies have experienced most of their growth.

Many financial planners also recommend that people invest in all three types of investments – large-cap, mid-cap, and small-cap – so that their portfolios are better diversified.

Things to look for when choosing investments include risk tolerance, your personal financial goals, and time horizon, among others. It pays to thoroughly review all aspects of any company you wish to invest in at any given time.

Back to Intuit

Intuit has had years where their total market cap suffered setbacks, including 2007, 2008, 2015, and 2022. If you look at the numbers from those years, you’ll notice the overall number for each year is a negative one.

Nevertheless, most of the numbers are small ones, showing that over the past 20 or so years, the company has enjoyed steady growth.

Obviously, a article cannot offer any type of financial advice, but the fact that Intuit is currently the 100th largest company certainly says a lot about it.

Summary

Intuit is a company that specializes in financial software, and it is the maker of familiar software that includes QuickBooks and Credit Karma. Its current market capitalization is $121.83 billion, making it the 100th largest company in the United States.

If you’re looking for potential investments in the stock market, Intuit is definitely one to consider, but make sure your portfolio includes a combination of large-cap, mid-cap, and small-cap companies to increase your chances of making money.

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