If you're creating an investment plan designed to help you achieve long-term financial goals, understanding the relationship between company size, return potential, and risk is very important. Market cap measures what a company is worth on the open market, as well as the market's perception of its future prospects because it reflects what investors are willing to pay for its stock.
The market capitalization ranking of a company does not necessarily rank it in terms of its size. Market cap or in other words market capitalization refers to the total value of all a company's shares of stock.
It is calculated by multiplying the cost of a stock by its total number of outstanding shares. The market cap allows investors to understand the relative size of one company versus another.
Market cap measures what a company is worth on the open market, as well as the market's perception of its future prospects because it reflects what investors are willing to pay for its stock. The market capitalization ranking of a company does not necessarily rank it in terms of its size.
Based on 2022 market capitalizations, here are the world's top 10 companies
1. Apple Inc
Industry: Electronics, Information TechnologyProduct: Mobile, iPod, Personal computers, tablets and many more
Apple Inc, a Cupertino-based American tech company is the most valuable company in the world with a record market cap of $ 2.294 Trillion. It has been founded in the year 1976 by Steve Wozniak, Ronald Wayne, and Steve Jobs.Apple is a brand with a revenue of $275 billion dollars as of 2021.
Apple started its journey engaged in the segment of the personal computer which later grew huge success with its entry into the mobile phone segment which was early started with Laptops and iPhones and has now diversified into a wide range of products like Smartwatches, iPod tablets, televisions, Accessories, etc.
Apple is the first publicly traded company in the world to achieve a 2 Trillion market cap in 2020. It now has more than 516 retail stores worldwide and employs around 147,000 employees.
Industry: Software development.
Products: Microsoft Office, Microsoft Windows, Xbox.
The second most valuable company in the world is Microsoft. The company is headquartered in Redmond, Washington, USA. The famous corporation was founded in 1975 by Bill Gates, one of the world's richest men in 2022.
At that time, Microsoft was the first software developer that suggested using packaged software for home computers to make the PC experience user-friendly, for mobiles, tablets and office equipment.
Today, Microsoft is one of the leading companies in the PC software market as well. It releases new-generation Windows operating systems, a set of applications to work with documents called Microsoft Office, and many other software programs.
3. Saudi Aramco
Industry: Oil and gas production, refining.
Products: Crude Oil, Natural Gas, petrochemical derivatives and many more.
Saudi Aramco (Saudi Arabian Oil Company) went public two years ago in 2019, and it is the world’s second-largest company with a market capital of 2.206 Trillion dollars. Aramco, which the Saudi government owns, and world’s second-largest company, with crude oil reserves of 270 billion barrels.
Saudi Arabia is part of the Organization of the Petroleum Exporting Countries along with 12 other countries, which contribute 44% of global oil production.
Dahran-based Saudi Aramco, which raised a record $25.6 billion in its initial public offer (IPO), was founded in the year 1933. In 2020 the company recorded revenue of $230 billion. Aramco has subsidiaries in Japan, Russia, China, UAE, USA, Great Britain, and many other countries. Aramco employs around 66,800 employees across the world, and the Saudi Arabian government holds 98.5% of the company’s stake.
Industry: Internet, Software services.
Products: Operating System, Search Engine, Mobile Phone
Alphabet Inc, an American multinational company is the parent company of shopping mode Google LLC and several other subsidiary companies is the world’s fourth-largest company with a market cap of $1.524 trillion,
California-based shopping mode Google inc is the undisputed leader in the search engine segment worldwide with a market share of 91.9% as of 2022. Alphabet made a revenue of $182.5 billion in 2021 and employs close to 135,000 employees worldwide founded by Larry Page and Sergey Brin in 1998 when they were studying at Stanford University.
Industry: Retail business, E-Commerce, Artificial Intelligence.
Products: Software, Kindle, FireTV, Echo and many more.
Amazon.com, Inc, an American multinational tech company is the fifth-largest in the world with a market cap of $1.158 Trillion. Jeff Bezos, who happens to be the world’s richest person, was the founder of Amazon in 1994.
Amazon started as an online marketplace company that used to sell books and later expanded to sell almost everything required in today’s world through its online portal.
Amazon recorded the highest ever revenue of $469 billion last year in 2021 making it the world’s largest Internet company by revenue. It employs a record 1,608,000 employees worldwide.
Industry: Automobiles, EnergyProducts: Cars, Trucks, Solar roofs, etc.
Tesla is an American automotive and energy company and also the world’s largest electric vehicle manufacturer. The company has a market cap of 756.87 billion dollars.
The company also started making solar panels, solar roof tiles, and batteries to provide green energy. Tesla along with 27 other companies formed (Zero Emission Transport Association (ZETA) in the year 2020 to move all internal combustion vehicles to electric.
Palo-Alto-based Tesla Inc was founded by Martin Eberhard and Marc Tarpenning in 2003. However present CEO Elon Musk is the face of the company and a major shareholder with a 22% stake in Tesla. In the year 2009, Tesla produced its debut car model, the company called Roadster. Tesla has 70,700 employees and 598 retail stores spread across different parts of the world.
7. Berkshire Hathaway
Industry: Insurance, Finances, Media, Railway transport, food, and non-food products etc.
Products: Property and casualty insurance and Investments
Berkshire Hathaway was a US-based American textile manufacturing company when it was founded 182 years ago in the year 1839.
Warren Buffett is chairman and CEO of the company and is popularly known as “The Oracle of Omaha” for his investment philosophy.
Omaha, Nebraska-based Berkshire Hathaway has a market cap of $615.41 Billion with revenue of $346.04 billion as of 2021. The company has 360,000 active employees. The share price of the company is quoted northwards of $450,000 per share and it is the world’s most expensive stock in absolute terms.
8. Johnson & Johnson
Industry: pharmaceuticals and other products.Products: producing drugs and medical equipment.
Johnson & Johnson is an American multinational company producing medical devices, pharmaceuticals, and many other consumer products. The company was founded by three brothers – Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson – in 1886.
First, the brothers produced bandages and plasters. Later, in 1893, they produced baby powder as well with the growth of success they started producing other products.About 250 affiliate companies located in 60 countries and selling to more than 175 countries. The company is headquartered in New Jersey, USA.
9. Meta Platforms Inc (Facebook)
Facebook was developed by Mark Zuckerberg in 2004. The Facebook social network is currently visited by more than 2 billion people every day. And the market value of $445 billion. Today, Facebook yields more than $29 billion in net yearly profit due to online advertising. Since its net profit increased by almost 56% within last year. It's headquartered in Menlo Park, California, USA.
10. Visa Inc.
Industry: Financial Services and institutions.
Visa Inc. was founded in 1958 and is the second-largest payment system in the world based on issued cards and transaction data. You can pay with Visa cards in more than 200 countries. It is an international company that processes payment transactions and bank transfers. You can pay with Visa cards in more than 200 countries.
The company has four centres for processing these transfers: Colorado, Virginia, London, and Singapore. They are well protected from possible criminal interference and natural disasters. The company is headquartered in California, USA.
Despite challenges that came with the pandemic, ongoing war and unpredictable markets up & down, the world’s largest ranking companies managed to boost sales and profits. Market capitalization is based on the total value of all a company's shares of stock. A company's market capitalization is calculated by multiplying the total number of its shares remaining by the current market price of a single share.