How to Calculate Estimated Market Share
- 1). Find the total sales of a company in the industry for which you are trying to estimate market share.
- 2). Determine the total sales for the same industry. If actual data is not available, you may need to estimate this amount. A good starting point is to look at economic data available from the U.S. Department of Commerce and also the income and sales of industry competitors if they are publicly traded.
- 3). Divide the sales of a company by total industry sales. For example, if a firm has sales of $500 and you estimate that the industry has total sales of $1,000, your equation would look like this:
($500 / $1,000)
In this instance, the firm's market share would be 0.5, or 50 percent.
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