How to Calculate the Market Share in Excel – 4 Examples

How Is the Market Share Calculated?

The Market share describes how much a company contributes to the total sales of an industry over time. It is calculated by dividing the total sales of a company by the total sales of the entire market, multiplied by 100%.

Consider the following scenario:

You sell shoes and made $100,000 in sales for a quarter. There were $1.0 million in total industry sales during that same time period. You have a 10% market share.

The formula is:

$100,000 / $1,000,000 = 0.10 x 100 = 10% market share.

Market share can be calculated:

• determining the total sales of a particular industry
• determining the number of customers in the market
• taking the market shares of the most important companies in the industry into account
• including all of the above.

Example 1 – Calculate the Market Share Based on Sales

Consider a new non-alcoholic beer of beverage company X. Its total sales  were $60 million last year. The non-alcoholic beverage industry has a market size of $550 million.

Steps:

• Prepare the dataset.

• Use the following market share formula in C7.

The market share of company X is 10.91%.

Example 2 – Calculate the Market Share Based on Sales Quantity

Take the global sales of mobile phones as an example. A total of 68 million Apple and 76 million Samsung units were sold in Q4 2019. The global mobile phone market sold 430 million units during the same period.

Based on the number of units sold, determine Apple and Samsung’s market share.

Steps:

• Create a dataset.

• Use the formula in C9.

The market share of Apple is 15.81%.

• 17.67% is the market share of Samsung.

Example 3 – Calculate the Market Share for Multiple Companies

Consider companies A, B, C, and D that make up the whole industry. The total sales of companies A, B, C, and D during FY19 were $60 million, $80 million, $40 million, and $50 million, respectively.

Calculate the market share of company B.

Steps:

• Create a dataset.

• To calculate the total sales in the market, use the following formula in C9.
• Press ENTER.

• Use the formula in C11 to get the market share of company B: 34.78%.

Example 4 – Find the Best Market Shares

To select a company with at least 20% market share in its industry, determine which stocks can be shortlisted.

Steps:

• Prepare the data table.

• Enter the following formula in E5.
• Press Enter.

• Drag down the Fill Handle to see the result in the rest of the cells.

This is the output.

Download Practice Workbook

Download the following practice workbook.

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