What Are the Biggest UK Companies by Market Cap and How to Invest in Them?
As of August 21, 2024, the top 10 largest companies in the world by market capitalization, often referred to as the world’s biggest companies, are as follows. All figures are taken from TradingView.
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Understanding Market Capitalization
Market capitalization, often referred to as market cap, is a crucial metric that measures the total value of a company’s outstanding shares. It is calculated by multiplying the total number of shares outstanding by the current market price of one share. This figure provides a snapshot of a company’s market value, offering insights into its size and financial health.
Market capitalization is a key factor in evaluating a company’s market value, which represents the total value of all its outstanding shares. This metric is vital for investors as it influences the stock price and reflects the company’s overall financial stability. Companies are often categorized into different market capitalization groups, such as large-cap, mid-cap, and small-cap, based on their market value.
The market cap of a company can fluctuate over time due to various factors, including changes in the stock market, the company’s financial performance, and broader economic conditions. Understanding market capitalization helps investors make informed decisions by providing a clear picture of a company’s market value and its position within the stock market.
1. Apple
- Market Cap: 444 trillion USD
- Stock Exchange: NASDAQ
- Share Price: 65 USD
- P/E: 49
- EPS: 57 USD
Apple is often regarded as the most valuable company in the world due to its innovative products and strong market presence.
2. Microsoft
- Market Cap: 158 trillion USD
- Stock Exchange: NASDAQ
- Share Price: 80 USD
- P/E: 00
- EPS: 80 USD
Microsoft’s market cap is significantly bolstered by its leadership in cloud computing services, particularly through its Azure platform.
[Nvidia: Graphics Processing Units](https://fortrade.com/Singleproduct/NVDA)
- **Market Cap:**13 trillion USD
- Stock Exchange: NASDAQ
- **Share Price:**25 USD
- **P/E:**44
- **EPS:**71 USD
Nvidia’s market cap is driven by its dominance in the production of graphics processing units (GPUs), which are essential for gaming, AI, and data centers.
4. Alphabet
- **Market Cap:**068 trillion USD
- Stock Exchange: NASDAQ
- **Share Price:**96 USD
- **P/E:**24
- **EPS:**97 USD
Alphabet is a leading technology company, known for its innovations in search engines, advertising, and various other tech-driven services.
5. Amazon
- **Market Cap:**877 trillion USD
- Stock Exchange: NASDAQ
- **Share Price:**88 USD
- **P/E:**86
- **EPS:**17 USD
Amazon is consistently ranked among the top companies in the world due to its vast e-commerce platform and cloud computing services.
6. Saudi Aramco
- Market Cap: 825 trillion USD
- Stock Exchange: TADAWUL
- Share Price: 80 SAR
- P/E: 43
- EPS: 48 USD
Saudi Aramco’s market cap is heavily influenced by its dominance in the oil and gas sector, making it one of the most significant energy companies globally.
7. Meta Platforms
- Market Cap:333 trillion USD
- Stock Exchange: NASDAQ
- Share Price: 73 USD
- P/E: 89
- EPS: 59 USD
Meta Platforms is one of the leading technology companies, known for its social media services and investments in virtual reality.
8. Berkshire Hathaway
- Market Cap: 289 billion USD
- Stock Exchange: NYSE
- Share Price: 472,400.00 USD
- P/E: 26
- EPS: 47,165.93 USD
Berkshire Hathaway is considered a valuable company due to its diverse portfolio and strong financial performance.
9. Eli Lilly
- Market Cap: 876 billion USD
- Stock Exchange: NYSE
- Share Price: 97 USD
- P/E: 66
- EPS: 01 USD
Eli Lilly is among the valuable companies in the pharmaceutical sector, known for its innovative drug development and strong market presence.
10. TSMC
- Market Cap: 74 billion USD
- Stock Exchange: TWSE
- Share Price: 958 TWD
- P/E: 91
- EPS: 09 USD
TSMC is recognized as a valuable company due to its leadership in semiconductor manufacturing and its critical role in the global tech supply chain.
Investing in Large-Cap Companies
Investing in large-cap companies is a popular strategy for investors seeking stable returns and lower risk. Large-cap companies are typically well-established with a proven track record of financial performance. They often boast a strong market presence, a diverse product or service portfolio, and a solid financial foundation.
Takeaways for Investors
It’s wise to have these biggest market cap companies in your portfolio, for they are believed to bring stable gains from share price rises as well as dividend payments to investors in the long term. A company’s market cap can fluctuate based on market conditions, making it essential for investors to stay informed about these changes.
To invest in these companies, you can buy shares outright from stock exchanges, or you can speculate on share price movements with stock CFDs. CFDs are a financial derivative that allows investors to go long and short on price changes without having to own the asset itself. It’s a simple way to make quick gains in the stock market.
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