Free-float methodology
Free-float methodology adjusts share capital to reflect only shares freely available for public trading in index weightings.
Plain-language meaning
Free-float methodology adjusts share capital to reflect only shares freely available for public trading in index weightings.
Why it is useful
Free-float methodology is useful as descriptive evidence when it is compared on the same definition, source, period, unit and exact listing. It is one input to research, not a verdict.
Where it appears in XMarketRadar
Look for Free-float methodology on Market Details, quotes, order/price context, watchlists and screener result columns when the selected provider supplies the field.
How it is calculated or sourced
Free Float Factor = (Total Shares − Excluded Shares) / Total Shares, where excluded shares include promoter holdings, government stakes, strategic cross-holdings and locked-in employee trusts. Free-Float Market Cap = Total Market Cap × Free Float Factor.
Inputs, period and unit
Read the disclosed inputs or source, observation period, bar interval, unit, native currency and scale. A value without its source and as-of context is incomplete; unlike units must not be combined.
Worked example
Illustrative only: A firm has 100 million total shares. Promoters hold 55 million, government entities hold 10 million, and locked-in trusts hold 5 million. Free float shares = 100 − 70 = 30 million (30%). At ₹400/share, total market cap is ₹4,000 Cr, but free-float market cap used for index weighting is ₹1,200 Cr.
What high and low mean
A higher or lower Free-float methodology value is descriptive, not automatically good or bad. Meaning depends on the instrument, comparison period, method and related evidence.
Positive, negative and genuine zero
Positive and negative Free-float methodology values retain the definition shown here. A genuine reported or computed zero is displayed as 0 and is not the same as missing evidence.
Limitations and common mistakes
Free-float methodology may differ by provider definition, observation time, instrument and venue. Common mistakes are dropping units or dates, comparing unlike scopes, and treating a missing value as zero.
Market-specific differences
The concept is used across all supported markets, but currency, price scale, session calendar, source field and regulatory definition can differ. XMarketRadar preserves the exact exchange context.
Suggested next steps
Open the related Market structure terms below, then follow the matching Help Centre task guide and inspect Free-float methodology on an exact exchange listing. Confirm source, as-of time, units and unavailable reason before using it in research.
Educational information only; not investment advice or an order service.
This Free-float methodology tutorial is educational and descriptive. It is not investment advice, a price prediction, a recommendation, or an instruction to buy, sell, rebalance or place an order.
Also known as: float-adjustment, public-float