The market capitalization of the Global Top 100 companies has increased by 5% since last year, to USD 21 trillion, mainly determined by the performance of US companies, according to PwC Global Top 100 companies.
Instead, both China, including Taiwan and Hong Kong, and Europe saw a decrease of 4% and, respectively, 5% in its total market capitalization reversing last year’s earnings.
Top ten global companies consist mainly of technology and e-commerce companies (seven in ten): Microsoft, Apple, Amazon, Alphabet, Berkshire Hathaway, Facebook, Alibaba, Tencent, Johnson & Johnson and Exxon Mobil. Microsoft had the highest annual performance, with the market capitalization rising by 29%, which propelled it into first place, ahead of Apple. In the last ten years, the market capitalization of the American company has tripled.
“Although this year hasn’t recorded as high performance as in previous years, the technology sector continues to dominate the top, being represented by most companies and holding the largest share in the total market capitalization of the 100 companies. This is more obvious if we look that the four US giants in the first places detached from the rest of the platoon. Thus, the capitalization of Alphabet, from the fourth position, is almost double of that of Berkshire Hathaway from the next place”, says Sorin Petre, Partner Valuation Services PwC Romania.
The top by regions
For the fifth consecutive year, the US ranks first, having more than half (54) of the companies in the top with a capitalization of 63% of the total, respectively USD 13.29 trillion.
China, including Taiwan and Hong Kong, ranks second, with 15 companies valued at USD 3,197 trillion, down 4% from a year earlier. The evolution was influenced by the commercial uncertainties and their impact on the perception of the local market and contrasts with the 57% increase from 2018, when three new companies entered the Top 100 and two reached the top ten.
Europe ranks third
“The geopolitical challenges and, especially, the uncertainty about Brexit have had an impact on European companies in the last year, whose capitalization decreased by 5% compared to the previous year. The top 20 companies in Europe have a cumulative market capitalization of USD 3.18 trillion, and the best placed are from Switzerland: Nestle (13th place), Novartis (19) and Roche (25)”, showed Ileana Guțu, Senior Manager PwC Romania.
If Switzerland has the top ranked companies, the UK is the best represented in Europe, with six companies. France has 5 companies, Switzerland three and Ireland two. Germany, Denmark, the Netherlands and Belgium each have a company in the rankings.
Germany recorded the biggest loss compared to the previous year, due to the fact that three companies didn’t enter the top: Siemens, Volkswagen and Allianz.
India, Canada and Japan are also represented in the ranking with two companies and Australia, Brazil, Saudi Arabia, South Africa and South Korea with one company. India rejoined to the top for the first time since 2009, with the re-entrance of Reliance Industries and the premiere entry of Tata Consultancy.
The full report can be found here.
