Market capitalisation which is also known as the market value of the company is defined as the total value of outstanding shares of the firm. In simple words it is the value of shares outstanding multiplied by the value per share. E.g.: – XYZ Pvt. Ltd. Has 100,000 outstanding shares and the value per share is Rs.10, then the market capitalisation or the market value of XYZ is Rs.10, 00,000 (Rs. 10 lakhs).
It is common term / method used by investors before investing in any particular company to quickly know / calculate its present market value before investing. There are generally four categories of market capitalisation based on the size and value. Companies with USD $10 billion and more is large cap. Company. Mid capital comprises of USD $2 billion to $10 billion cap. Companies with capital ranging from USD $300 million to $2 billion come under the banner of small capital firms and micro – capital companies have a capital of below USD $300 million. The following are the top ten companies in the world categorised according to their market capitalisation value as of 2019.
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10. Wells Fargo: –
Wells Fargo is an American bank settled in San Francisco founded in 1852. The bank provides the public with a large magnitude of products to choose from to manage their wealth. Products include Asset Management, Brokerage Services, Commercial Banking, Trading, Insurance, Money Markets, Foreign Exchange, Equities Trading, Retail Banking, Risk Management and many more. The bank lost some its market capitalisation and slipped behind JP Morgan Chase when it was involved in a scam in 2015 in the case of opening of millions of fake accounts by its employees.
It has a market capitalization: – USD $278 billion dollars.
9. JP Morgan Chase: –
JP Morgan Chase and Co. is the largest bank in America and world’s third largest with assets over USD $2.5 trillion. It’s a major player in providing financial services to the public as remarked by Forbes. Its products include Asset Allocation, Asset Management, Bank Underwriting, Advisory, remittance, Retail Banking, Stock Portfolios, wire transfers, Wealth Management, Mortgage underwriting and many more.
Market Capitalization: – USD $313 billion dollars.
8. Facebook: –
Facebook is the world’s largest social media websites with over 1.86 billion active monthly users. It was founded in 2004 by Mark Zuckerberg along with his fellow Harvard friends. The website grew quickly over different colleges and soon had its presence across the internet. Since 2004 the company has acquired many other companies like WhatsApp, Instagram, Oculus VR and Messenger. It is available throughout the globe except the blocking countries. The company does not sell any physical products.
Market Capitalization: – USD $334 billion dollars.
7. Johnson and Johnson: –
Johnson and Johnson is a pharmaceutical, medicines, surgical equipment and consumer packaged goods provider which is settled in New Jersey, United States of America. It is one of the major players among other competitors in the same industry and has been able to acquire a major market share. Its products include baby care goods like talcum powder, oil, shampoo, soap etc. pharmaceutical products for immunology, cardiovascular and metabolic disorders etc. medical devices for surgery as well as consumer goods like glucose meter, glucose strips, lancets, band – aids, mouth wash, anti – septic liquid and any more.
Market Capitalization: – USD $337 billion dollars.
6. Exxon Mobil: –
Exxon Mobil is an American multinational oil and gas company headquartered in Texas. It was formed by the merger of two oil companies Exxon and Mobil in in 1999. The company has its name listed on many big platforms like the Fortune 500, Forbes Global 2000 and many more. It also has many other subsidiaries like Aera Energy, Esso, Esso Australia, Superior Oil Co. and many more.
Market Capitalization: – USD $339 billion dollars as of the present year.
5. Berkshire Hathaway: –
Established in 1839 in United States of America, Berkshire is one of the biggest companies with its spread across innumerable sectors like investments, utilities, food processing, restaurants, media, aerospace and many more. The company also has made some big investments in other companies like Mars, Wells Fargo, Coca – Cola etc. and itself owns companies like Dairy Queen, Fruit of the loom, Helzberg Diamonds and many more.
Market Capitalization: – USD $410 billion dollars.
4. Amazon: –
Amazon is the largest e – Commerce Company headquartered in Seattle, Washington. The company serves throughout the globe including developing nations markets like India etc. It has over 200 million products to offer to the public. There are country specific apps and websites dedicated by Amazon to each of its servicing country. The company takes customer support very seriously and has different teams for the respective countries.
Market Capitalization: – USD $423 billion dollars.
3. Microsoft: –
Microsoft is a software based company headquartered in Washington, United States of America. It is the company owned by the world’s richest man Bill Gates. The company sells, supports, licenses and manufactures consumer software’s and electronics like tablets, mobile phones etc. but majorly deals in software. It also has various products and services to offer like Windows, Skype, and Xbox live, Bing, LinkedIn etc.
The company has a market capitalization of USD $508 billion dollars.
2. Alphabet: –
Alphabet was officially founded in 2015 by Larry page (CEO) and Sergey Brin (President) which is currently headquartered in California, United States of America. It is the parent company of the worlds most used search engine named Google Inc. The reorganization of google into Alphabet was completed in October 2015. Google currently sells only one physical product that is its new Google Pixel phone which is available almost throughout the world (online only), other than that there are online products and services which can be used at no or minimal costs on their website by visiting Google.com like E – mail, Google maps, Google finance and many more. Before google Alphabet owned several over companies like Waymo, Verily, and CapitalG etc.
Market Capitalization: – USD $573 billion dollars.
1. Apple Inc.: –
Apple Inc. was founded in 1976 and is currently headquartered in California, United States of America. It sells consumer electronic goods which are a benchmark of quality and style for many other companies in the same industry. Its products are extremely famous among the public throughout the globe due to its durability and style. Its products include the infamous IPhone, MacBook (Apple Laptops), Desktops, IPod and many more. Moreover Apple heavily invests in research and development and comes up with new software’s and products almost every year. Nowadays having an apple product is a status symbol.
Its market capitalization as of 2019 is estimated at USD $753 billion dollars which is the highest in the world.
The above mentioned companies have put in a lot of time and strategy to reach their present level. Proper thinking, planning and well execution is what is required to grow a company to this level. Almost every company is operating in the market from over 50 years and has developed amazing goodwill by being loyal to its customers and expecting the same in return.