Top 5 companies by market capitalization in India

January 29, 2024July 23, 2023 by Nithisha CHALLA

Top 5 companies by market capitalization in India

In this article, Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023) presents the top 5 companies by market capitalization in India.

Introduction to market capitalization

Market capitalization is a crucial factor in investment analysis. Learning about the market capitalization of companies helps you evaluate their size, growth potential, and overall value in the market. This knowledge can assist you in making informed investment decisions and assessing the financial health of companies.

Top 5 companies by market capitalization in India

The top 5 companies in India according to market capitalization by 2023 are as follows:

1) Reliance Industries Limited
2) Tata Consultancy Services Limited
3) HDFC Bank Limited
4) Infosys Limited
5) Hindustan Unilever Limited

By looking at these top 5 companies, we observe that these companies mainly belong to the technology sector.

We detail below the characteristics of each company: statistics, analysis of revenues, and stock market data.

#1 Reliance Industries Limited

Logo of Reliance Industries Limited

Source: the company.

Statistics

Market capitalization: $189 billion
Listed on exchanges: BSE, NSE
Listed on Stock Indexes: Nifty 50 Index.
Industry: Conglomerate (Energy, Petrochemicals, Telecommunications, Retail)
Location of headquarters: Mumbai, Maharashtra, India
Year founded: 1966
Number of employees: 342,982

Revenues

Reliance Industries Limited is a diversified conglomerate with interests in various sectors, including energy, petrochemicals, telecommunications, and retail. The company operates the largest oil refinery complex in the world and has a significant presence in the exploration and production of oil and gas. Reliance also operates India’s largest organized retail chain and is a major player in the telecommunications sector through its subsidiary, Reliance Jio. With its diverse business portfolio, Reliance Industries has been a key player in India’s economic growth.

Stock chart

Stock chart for Reliance Industries

Source: Yahoo! Finance.

The historical data for Reliance Industries stock prices can be downloaded from Yahoo! Finance website: Download the data for Reliance Industries

#2 Tata Consultancy Services Limited (TCS)

Logo of Tata Consultancy Services Limited.

Source: the company.

Statistics

Market capitalization: $153 billion
Listed on exchanges: BSE, NSE, NYSE
Listed on Stock Indexes: Nifty 50 Index and the BSE Sensex
Industry: Information Technology (IT Services, Consulting)
Location of headquarters: Mumbai, Maharashtra, India
Year founded: 1968
Number of employees: 528,748

Revenues

Tata Consultancy Services Limited (TCS) is a global leader in IT services, consulting, and business solutions. The company offers a wide range of services, including software development, infrastructure management, cloud services, and digital transformation solutions. TCS serves clients in various industries, including banking, finance, healthcare, retail, and manufacturing. With a strong focus on innovation and technology, TCS has established a strong reputation in the global IT industry and has been a significant contributor to India’s IT exports.

Stock chart

Stock chart for Tata Consultancy Services

Source: Yahoo! Finance.

The historical data for Tata Consultancy Services stock prices can be downloaded from Yahoo! Finance website: Download the data for Tata Consultancy Services

#3 HDFC Bank Limited

Logo of HDFC Bank

Source: the company.

Statistics

Market capitalization: $111 billion
Listed on exchanges: BSE, NSE, NYSE
Listed on Stock Indexes: Nifty 50 Index and the BSE Sensex
Industry: Banking and Financial Services
Location of headquarters: Mumbai, Maharashtra, India
Year founded: 1994
Number of employees: 166,890

Revenues

HDFC Bank Limited is one of India’s largest private sector banks, providing a wide range of banking and financial services to individuals and businesses. The bank offers services such as savings and current accounts, loans, credit cards, insurance, and investment products. HDFC Bank has a widespread branch and ATM network across India and has embraced digital banking technologies to provide convenient and efficient banking solutions. With its strong customer base and robust financial performance, HDFC Bank has been a key player in India’s banking sector.

Stock chart

Stock chart for HDFC Bank

Source: Yahoo! Finance.

The historical data for HDFC Bank stock prices can be downloaded from Yahoo! Finance website: Download the data for HDFC Bank

#4 Infosys Limited

Logo of Infosys

Source: the company.

Statistics

Market capitalization: $80 billion
Listed on exchanges: BSE, NSE, NYSE
Listed on Stock Indexes: Nifty 50 Index and the BSE Sensex
Industry: Information Technology (IT Services, Consulting)
Location of headquarters: Bangalore, Karnataka, India
Year founded: 1981
Number of employees: 335,186

Revenues

Infosys Limited is a global leader in IT consulting and services, offering a range of solutions such as application development, system integration, cloud services, and digital transformation. The company serves clients across various industries, including banking, finance, healthcare, and retail. Infosys has been at the forefront of innovation and technology.

Stock chart

Stock chart for Infosys

Source: Yahoo! Finance.

The historical data for Infosys stock prices can be downloaded from Yahoo! Finance website: Download the data for Infosys

#5 Hindustan Unilever Limited

Logo of Hindustan Unilever Limited

Source: the company.

Statistics

Market capitalization: $75 billion
Listed on exchanges: BSE, NSE
Listed on Stock Indexes: Nifty 50 Index and the BSE Sensex
Industry: Consumer Goods (FMCG)
Location of headquarters: Mumbai, Maharashtra, India
Year founded: 1933
Number of employees: 149,000

Revenues

Hindustan Unilever Limited is one of India’s leading fast-moving consumer goods (FMCG) companies. It offers a wide range of products, including personal care, home care, and food and beverages. HUL’s popular brands include Lux, Lifebuoy, Dove, Surf Excel, Rin, Knorr, and Lipton, among others. The company has a strong distribution network that reaches millions of households across India. HUL has been a key player in the Indian consumer goods market, catering to the diverse needs of consumers and maintaining a strong market presence.

Stock chart

Stock chart for Hindustan Unilever

Source: Yahoo! Finance.

The historical data for Hindustan Unileverstock prices can be downloaded from Yahoo! Finance website: Download the data for Hindustan Unilever

Why should I be interested in this post?

As a management student, understanding the top companies in different markets and their market capitalization holds significant value. It provides you with industry insights, allowing you to comprehend the competitive landscape and trends within specific sectors.

Analyzing market capitalization aids in investment analysis, enabling you to assess the size, growth potential, and financial health of companies. Moreover, studying successful companies (success being measured by their market capitalization) provides valuable lessons in competitive strategy, organizational management, and leadership practices.

Useful resources

Companies Market Cap Largest Indian companies by market capitalization

Yahoo! 15 Biggest Indian State-Owned Companies

Wikipedia List of largest companies in India

About the author

The article was written in June 2023 by Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023).

Top 5 companies by market capitalization in Europe

January 30, 2024July 23, 2023 by Nithisha CHALLA

Top 5 companies by market capitalization in the Europe

In this article, Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023) presents the top 5 companies by market capitalization in Europe.

Introduction to market capitalization

Market capitalization, often referred to as “market cap,” is a key metric used in the financial world to assess the size and value of a publicly traded company. Market capitalization provides insights into a company’s position in the market and its relative size compared to other companies. It is a measure of a company’s total market value, calculated by multiplying its current stock price by the total number of outstanding shares. It is an important indicator for investors, analysts, and market participants as it reflects the perceived worth of a company by the investing public. Note that market capitalization assesses the size of the company in the equity market, but the total value of the company measured by its assets or the sum of its liabilities and shareholders’ equity may be larger if the company uses debt (financial leverage).

Top 5 companies by market capitalization in Europe

The top 5 companies in the European market according to market capitalization by 2023 are as follows:

1) Nestlé S.A.
2) ASML Holding N.V.
3) Roche Holding AG
4) Novartis AG
5) SAP SE

By looking at these top 5 companies, we observe that these companies mainly belong to different sectors to the economy: Consumer Goods, Technology, and Healthcare.

We detail below the characteristics of each company: statistics, analysis of revenues, and stock market data.

#1 Nestlé S.A.

Logo of Nestle

Source: the company.

Statistics

Market capitalization: $315.44 Billion
Listed on exchanges: SIX Swiss Exchange
Listed on Stock Indexes: Swiss Market Index (SMI) and the Euro Stoxx 50 Index.
Industry: Consumer Goods (Food and Beverage)
Location of headquarters: Vevey, Switzerland
Year founded: 1866
Number of employees: 342,982

Revenues

Nestlé is a multinational food and beverage company known for its wide range of products, including baby food, dairy products, confectionery, coffee, and pet care. The company owns popular brands such as Nescafé, KitKat, Maggi, Purina, and Nespresso. With a global presence, Nestlé serves consumers in various markets and has a strong focus on nutrition, health, and wellness. The company’s diverse portfolio and commitment to sustainability have contributed to its success in the European market.

Stock chart

Stock chart for Nestle

Source: Yahoo! Finance.

The historical data for Nestle stock prices can be downloaded from Yahoo! Finance website: Download the data for Nestle

#2 ASML Holding N.V.

Logo of ASML Holding N.V.

Source: the company.

Statistics

Market capitalization: $280.24 Billion
Listed on exchanges: Euronext Amsterdam, NASDAQ
Listed on Stock Indexes: AEX Index.
Industry: Technology (Semiconductor Equipment)
Location of headquarters: Veldhoven, Netherlands
Year founded: 1984
Number of employees: 166,890

Revenues

ASML Holding is a Dutch company that specializes in the development and manufacturing of advanced semiconductor equipment used in the production of integrated circuits. The company’s lithography systems play a critical role in enabling the production of smaller, faster, and more efficient chips. ASML’s innovative technology and high-performance equipment have made it a trusted partner for semiconductor manufacturers worldwide. The company’s success has been driven by its focus on research and development, as well as its ability to meet the evolving demands of the semiconductor industry.

Stock chart

Stock chart for ASML

Source: Yahoo! Finance.

The historical data for ASML stock prices can be downloaded from Yahoo! Finance website: Download the data for ASML

#3 Roche Holding AG

Logo of Roche

Source: the company.

Statistics

Market capitalization: $253.04 Billion
Listed on exchanges: Swiss Exchange, OTCQX International Premier
Listed on Stock Indexes: Swiss Market Index
Industry: Healthcare (Pharmaceuticals)
Location of headquarters: Basel, Switzerland
Year founded: 1896
Number of employees: 149,000

Revenues

Roche Holding is a global healthcare company that operates in the fields of pharmaceuticals and diagnostics. The company focuses on developing and delivering innovative medical solutions to address various diseases, including cancer, infectious diseases, neuroscience disorders, and rare diseases. Roche’s pharmaceutical portfolio includes drugs for oncology, immunology, and other therapeutic areas. The company is also a leader in the diagnostics industry, offering a wide range of diagnostic tests and systems. Roche’s commitment to advancing healthcare and improving patient outcomes has solidified its position as a prominent player in the European market.

Stock chart

Stock chart for Roche Holding

Source: Yahoo! Finance.

The historical data for Roche Holding stock prices can be downloaded from Yahoo! Finance website: Download the data for Roche Holding

#4 Novartis AG

Logo of Novartis

Source: the company.

Statistics

Market capitalization: $208.78 Billion
Listed on exchanges: SIX Swiss Exchange, NYSE
Listed on Stock Indexes: Swiss Market Index
Industry: Healthcare (Pharmaceuticals)
Location of headquarters: Basel, Switzerland
Year founded: 1996
Number of employees: 335,186

Revenues

Novartis is a multinational pharmaceutical company focused on the research, development, and commercialization of innovative healthcare solutions. The company’s portfolio includes prescription medicines, generic drugs, vaccines, and consumer health products. Novartis operates in various therapeutic areas, including oncology, immunology, cardiovascular, and ophthalmology. With its commitment to advancing medical science and improving patient outcomes, Novartis has established itself as a leader in the European pharmaceutical industry.

Stock chart

Stock chart for Novartis

Source: Yahoo! Finance.

The historical data for Novartis stock prices can be downloaded from Yahoo! Finance website: Download the data for Novartis

#5 SAP SE

Logo of SAP

Source: the company.

Statistics

Market capitalization: $154.66 Billion
Listed on exchanges: Frankfurt Stock Exchange
Listed on Stock Indexes: DAX Index
Industry: Technology (Enterprise Software)
Location of headquarters: Walldorf, Germany
Year founded: 1972
Number of employees: 528,748

Revenues

SAP is a leading enterprise software company that provides solutions for business operations, analytics, cloud computing, and customer experience. Its software applications help companies manage various aspects of their operations, including finance, human resources, supply chain, and customer relationship management. SAP serves clients across industries and has a strong presence in Europe and globally. The company’s innovative solutions and commitment to digital transformation have made it a key player in the European technology sector.

Stock chart

Stock chart for SAP

Source: Yahoo! Finance.

The historical data for SAP stock prices can be downloaded from Yahoo! Finance website: Download the data for SAP

Why should I be interested in this post?

Useful resources

Companies Market Cap Largest European companies by market capitalization

Statista Market capitalization of leading companies on Euronext stock exchange as of February 2023

Yahoo! 10 Best European Companies To Invest In

About the author

The article was written in June 2023 by Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023).

Top 5 companies by market capitalization in China

January 30, 2024July 23, 2023 by Nithisha CHALLA

Top 5 companies by market capitalization in China

In this article, Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023) presents the top 5 companies by market capitalization in China.

Introduction to market capitalization

Top 5 companies by market capitalization in China

The top 5 companies in the Chinese market according to market capitalization by 2023 are as follows:

1) Tencent Holdings Limited
2) Alibaba Group Holding Limited
3) Meituan
4) JD.com, Inc.
5) Ping An Insurance (Group) Company of China, Ltd.

By looking at these top 5 companies in China, we observe that these companies mainly belong to the technology (e-commerce) sector.

We detail below the characteristics of each company: statistics, analysis of revenues, and stock market data.

#1 Tencent Holdings Limited

Logo of Tencent

Source: the company.

Statistics

Market capitalization: $392.350 billion
Listed on stock indexes: HKEX
Listed on exchanges: HKEX
Industry: Technology (Internet Services, Social Media, Gaming)
Headquarters: Shenzhen, Guangdong, China
Year founded: 1998
Number of employees: 112,771

Revenues

Tencent Holdings Limited is a multinational conglomerate renowned for its diverse range of internet services and products. The company operates the popular social media platform WeChat, which offers messaging, payment, and social networking capabilities. Tencent is also a major player in the online gaming industry, with ownership of notable game studios and platforms. Additionally, Tencent provides online advertising services, streaming music, video content, and cloud services. The company has a strong presence in China and has expanded its influence globally.

Stock chart

Stock chart for Tencent Holdings Limited

Source: Yahoo! Finance.

The historical data for Tencent Holdings Limited stock prices can be downloaded from Yahoo! Finance website: Download the data for Tencent

#2 Alibaba Group Holding Limited

Logo of Alibaba

Source: the company.

Statistics

Market capitalization: $226.760 billion
Listed on stock indexes: HKD
Listed on exchanges: NYSE, HKEX
Industry: Technology (E-commerce, Cloud Computing)
Headquarters: Hangzhou, Zhejiang, China
Year founded: 1999
Number of employees: 251,462

Revenues

Alibaba Group Holding Limited is a multinational conglomerate specializing in e-commerce, retail, internet, and technology. The company operates various online marketplaces, including Taobao and Tmall, which connect buyers and sellers in both consumer and business-to-business transactions. Additionally, Alibaba provides cloud computing services (Alibaba Cloud), digital payment solutions (Alipay), and logistics services. With a dominant presence in the Chinese market, Alibaba has expanded its operations globally and plays a significant role in shaping the e-commerce industry.

Stock chart

Stock chart for Alibaba Group Holding Limited

Source: Yahoo! Finance.

The historical data for Alibaba Group Holding Limited stock prices can be downloaded from Yahoo! Finance website: Download the data for Alibaba

#3 Meituan

Logo of Meituan.

Source: the company.

Statistics

Market capitalization: $145.310 billion
Listed on stock indexes: HKEX, HKD
Listed on exchanges: HKEX
Industry: Technology (Online Services, Food Delivery)
Headquarters: Beijing, China
Year founded: 2010
Number of employees: 58,390

Revenues

Meituan is a leading Chinese e-commerce platform that specializes in providing various online services, including food delivery, restaurant reviews, hotel bookings, bike-sharing, and ride-hailing. The company’s primary business is its food delivery service, which has gained immense popularity in China. Meituan has expanded its offerings to include a range of lifestyle and travel-related services, catering to the diverse needs of its user base.

Stock chart

Stock chart for Meituan

Source: Yahoo! Finance.

The historical data for Meituan stock prices can be downloaded from Yahoo! Finance website: Download the data for Meituan

#4 JD.com, Inc.

Logo of JD.com, Inc.

Source: the company.

Statistics

Market capitalization: $88.357 billion
Listed on stock indexes: HKEX
Listed on exchanges: NASDAQ, HKEX
Industry: Technology (E-commerce, Retail)
Headquarters: Beijing, China
Year founded: 1998
Number of employees: 314,906

Revenues

JD.com, Inc., also known as Jingdong, is one of China’s largest e-commerce platforms. The company operates an online marketplace that offers a wide range of products, including electronics, apparel, home goods, and more. JD.com follows a direct sales model, owning and operating its inventory, ensuring product authenticity and quality. The company has expanded into logistics and delivery services, enabling fast and reliable shipments across China. JD.com has a strong presence in both business-to-consumer (B2C) and consumer-to-consumer (C2C) markets.

Stock chart

Stock chart for JD.com, Inc.

Source: Yahoo! Finance.

The historical data for JD.com, Inc. stock prices can be downloaded from Yahoo! Finance website: Download the data for JD

#5 Ping An Insurance (Group) Company of China, Ltd

Logo of Ping An Insurance.

Source: the company.

Statistics

Market capitalization: $118.750 billion
Listed on stock indexes: HKEX
Listed on exchanges: SSE
Industry: Financial Services (Insurance, Banking, Asset Management)
Headquarters: Shenzhen, Guangdong, China
Year founded: 1988
Number of employees: 362,000

Revenues

Ping An Insurance is a leading insurance and financial services company in China. It offers a wide range of insurance products, including life insurance, property and casualty insurance, health insurance, and asset management services. Ping An also operates a subsidiary bank, providing banking and financial services to individuals and businesses. The company has embraced technology and innovation, leveraging artificial intelligence, big data, and cloud computing in its operations. Ping An Insurance has a significant presence in the Chinese market and is recognized as one of the largest insurers globally.

Stock chart

Stock chart for Ping An Insurance

Source: Yahoo! Finance.

The historical data for Ping An Insurance prices can be downloaded from Yahoo! Finance website: Download the data for Ping An Insurance

Why should I be interested in this post?

Useful resources

Companies Market Cap Largest Chinese companies by market capitalization

Yahoo! 15 Biggest Chinese State-Owned Companies

About the author

The article was written in June 2023 by Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023).

Top 5 companies by market capitalization in the US

March 26, 2024June 28, 2023 by Nithisha CHALLA

Top 5 companies by market capitalization in the US

In this article, Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023) presents the top 5 companies by market capitalization in the US.

Introduction to market capitalization

Market capitalization is an important indicator for investors, analysts, and market participants as it reflects the perceived worth of a company by the investing public. Note that market capitalization assesses the size of the company in the equity market, but the total value of the company measured by its assets or the sum of its liabilities and shareholders’ equity may larger if the company uses debt (financial leverage).

The top 5 corporations in the US market according to market capitalization by 2023 are as follows:

1) Apple Inc.
2) Microsoft Corporation
3) Amazon.com, Inc.
4) Alphabet Inc. (formerly Google)
5) Meta Platforms Inc. (formerly Facebook Inc.)

By looking at these top 5 companies, we observe that these companies mainly belong to the technology sector.

We detail below the characteristics of each company: statistics, analysis of revenues, and stock market data.

#1 Apple Inc.

Logo of Apple Inc.

Source: the company.

Statistics (2023)

Market capitalization: $2,514 billion
Inclusion in stock market indexes: NASDAQ-100, S&P 500
Listing on stock exchanges: NASDAQ
Industry: Technology (Consumer Electronics)
Location of headquarters: Cupertino, California, United States
Year founded: 1976
Number of employees: 164,000

Revenues

Apple is a multinational technology company that designs, manufactures, and sells consumer electronics, software, and online services. It is best known for its iconic products such as the iPhone, iPad, Mac, and Apple Watch. The company has a strong ecosystem of hardware, software, and services, including the App Store, Apple Music, iCloud, and Apple Pay. Apple has a reputation for innovation and user-friendly designs, and it has a loyal customer base worldwide.

Stock chart

Stock chart for Apple Inc.

Source: Yahoo! Finance.

The historical data for Apple stock prices can be downloaded from Yahoo! Finance website: Download the data for Apple

#2 Microsoft Corporation

Logo of Microsoft Corporation

Source: the company.

Statistics (2023)

Market capitalization: $2,066 billion
Inclusion in stock market indexes: NASDAQ-100, S&P 500
Listing on stock exchanges: NASDAQ
Industry: Technology (Software)
Location of headquarters: Redmond, Washington, United States
Year founded: 1975
Number of employees: 221,000

Revenues

Microsoft is a multinational technology corporation that develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services. It is widely known for its flagship products such as the Windows operating system and Microsoft Office suite. The company has expanded into various other technology sectors, including cloud computing (Azure), gaming (Xbox), and enterprise software (Microsoft Dynamics). Microsoft has a strong presence in both consumer and enterprise markets.

Stock chart

Stock chart for Microsoft Corporation.

Source: Yahoo! Finance.

The historical data for Microsoft stock prices can be downloaded from Yahoo! Finance website: Download the data for Microsoft Corporation

#3 Amazon Inc.

Logo of Amazon

Source: the company.

Statistics (2023)

Market Capitalization: $1,011 billion
Inclusion in stock market indexes: NASDAQ-100, S&P 500
Listing on stock exchanges: NASDAQ
Industry: Retail (E-Commerce), Cloud Computing
Location of headquarters: Seattle, Washington, United States
Year founded: 1994
Number of employees: 1,465,000

Revenues

Amazon.com, Inc. is an American multinational conglomerate that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is the world’s largest online marketplace and offers a wide range of products and services through its websites and platforms. Amazon’s services include Amazon Prime, Amazon Web Services (AWS), Kindle e-readers, and Amazon Echo devices. The company has also ventured into other areas, such as entertainment production and grocery retail. Amazon has experienced significant growth and expansion since its inception.

Stock chart

Stock chart for Amazon Inc.

Source: Yahoo! Finance.

The historical data for Amazon stock prices can be downloaded from Yahoo! Finance website: Download the data for Amazon

#4 Alphabet Inc. (formerly Google Inc.)

Logo of Alphabet

Source: the company.

Statistics (2023)

Market Capitalization: $1,356 billion
Inclusion in stock market indexes: NASDAQ-100, S&P 500
Listing on stock exchanges: NASDAQ
Industry: Technology (Internet Services)
Location of headquarters: Mountain View, California, United States
Year founded: 1998
Number of employees: 190,711

Revenues

Alphabet Inc. is a multinational conglomerate that serves as the parent company of Google and several other subsidiaries. Google, as a subsidiary of Alphabet Inc., is a technology company that generates a significant portion of Alphabet’s overall revenues. While specific revenue figures for Google are not provided separately in Alphabet’s financial reports, Google’s advertising business constitutes the majority of Alphabet’s revenue stream. Google primarily generates revenue through its advertising platforms, including Google Search, YouTube, Google Display Network, and Google Ads.

Stock chart

Stock chart for Alphabet Inc.

Source: Yahoo! Finance.

The historical data for Amazon stock prices can be downloaded from Yahoo! Finance website: Download the data for Alphabet

#5 Meta Platforms Inc. (formerly Facebook Inc.)

Logo of Meta

Source: the company.

Statistics (2023)

Market capitalization: $529 billion
Inclusion in stock market indexes: NASDAQ-100, S&P 500
Listing on stock exchanges: NASDAQ
Industry: Technology (Social Media)
Location of headquarters: Menlo Park, California, United States
Year founded: 2004
Number of employees: 86,482

Revenues

Meta Platforms Inc., previously known as Facebook Inc., is a social media and technology company that focuses on connecting people and enabling social interactions. The company operates various social networking platforms, including Facebook, Instagram, WhatsApp, and Messenger. These platforms offer users the ability to share content, communicate with others, and engage in online communities. Meta Platforms Inc. also provides advertising and marketing solutions to businesses, leveraging the vast user base of its platforms. The company has expanded into areas such as virtual reality (Oculus) and artificial intelligence research. It plays a significant role in shaping the digital landscape and has a global user reach.

Stock chart

Stock chart for Meta Platforms

Source: the company.

The historical data for Meta Platforms stock prices can be downloaded from Yahoo! Finance website: Download the data for Meta Platforms

Why should I be interested in this post?

Useful resources

Companies Market Cap Largest American companies by market capitalization

Yahoo! The 30 Largest Companies on the Stock Market

About the author

The article was written in June 2023 by Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023).

Market Capitalization

June 28, 2023 by Nithisha CHALLA

Market Capitalization

In this article, Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023) explains Market Capitalization and its specificities.

What is Market Capitalization?

Market capitalization is a key metric used to assess the size and value of publicly traded companies. It represents the company’s value for the owners of the company (the shareholders or stockholders). This metric allows companies to be classified as large-cap, mid-cap, or small-cap based on their respective market-capitalization sizes.

Large-cap companies are typically more established, with market capitalizations exceeding several billion dollars. They are more stable and frequently represent industry leaders. In the US stock market, Apple, Microsoft, and Amazon are examples of large-cap companies.

Mid-cap companies fall between large-cap and small-cap companies. They are typically businesses that have seen moderate growth and may still have room for expansion. Mid-cap companies are frequently regarded as having a good balance of growth potential and stability. For example, Etsy Inc., DocuSign Inc., Spotify Technology S.A. etc.

Small-cap companies have lower market capitalizations than large-cap and mid-cap firms. They are generally thought to have greater growth potential, but also greater risk due to their smaller size and possibly limited resources. NeoGenomics, Inc., Clean Energy Fuels Corp., Axon Enterprise Inc. etc.

Mathematical formula?

The general formula for calculating market capitalization:

Market Capitalization = Current Share Price x Number of Outstanding Shares

In this formula:
“Current Share Price” refers to the price of a single share of the company’s stock. It is the latest transaction price. As Market Capitalization is usually computed every day, the current share price corresponds to the closing price of the trading session.

“Number of Outstanding Shares” represents the total number of shares of the company’s stock that are publicly available and held by investors.

The Significance of Stock Price

When considering market capitalization, the stock price is an important factor to consider. It represents the current market price at which a company’s shares are bought and sold. Stock prices, which are influenced by factors such as supply and demand, market sentiment, and company-specific news, play a critical role in determining a company’s market capitalization.

On the short term, as the number of shares issued by the company is stable, the stock price is the main factor which influences market capitalization.

How is the Number of Shares Computed?

The total number of outstanding shares of a company’s stock is used to calculate market capitalization. The outstanding shares are those that the company has issued and are held by shareholders, which include individual investors, institutional investors, and insiders.

The number of outstanding shares can be found in the company’s financial statements, specifically the balance sheet and the notes to the financial statements.

Which Shares are Included?

The outstanding shares generally include common shares or ordinary shares, which are the most common types of shares issued by companies. Preferred shares or other types of securities that may have different rights or characteristics are typically excluded from the calculation of market capitalization.

When we compute market capitalization, we take into consideration all outstanding shares of stock, which include publicly traded shares plus restricted shares held by the top management team and the founders of the company. Note that market capitalization is different from the float which takes into consideration only the shares available for trading in the secondary market.

If a company has different classes of shares with different voting rights or other characteristics, each class of shares may have its own market capitalization calculation based on the respective share price and the number of outstanding shares for that class.

Market capitalization provides an estimate of the overall value of the publicly traded portion of a company and is commonly used as a measure to compare companies or track changes in a company’s value over time.

Why should I be interested in this post?

Understanding market capitalization allows management students to analyze the financial health and performance of companies. By considering market capitalization along with other financial indicators, students can assess the relative size and value of companies in the market. Management students need to evaluate investment opportunities and determine the attractiveness of different stocks or companies based on their market capitalization and growth potential. Large-cap companies often offer stability and lower risk, while small-cap companies tend to be riskier but may have higher growth potential. Management students need to understand the risk-return tradeoff associated with different market capitalization segments.

Useful resources

Fidelity Investments Market capitalization

Wikipedia Market capitalization

Motley Fool An Example of Market Capitalization

About the author

The article was written in June 2023 by Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023).

Top 5 companies by market capitalization in India

Introduction to market capitalization

Top 5 companies by market capitalization in India

#1 Reliance Industries Limited

Statistics

Revenues

Stock chart

#2 Tata Consultancy Services Limited (TCS)

Statistics

Revenues

Stock chart

#3 HDFC Bank Limited

Statistics

Revenues

Stock chart

#4 Infosys Limited

Statistics

Revenues

Stock chart

#5 Hindustan Unilever Limited

Statistics

Revenues

Stock chart

Why should I be interested in this post?

Related posts on the SimTrade blog

Useful resources

About the author

Top 5 companies by market capitalization in the Europe

Introduction to market capitalization

Top 5 companies by market capitalization in Europe

#1 Nestlé S.A.

Statistics

Revenues

Stock chart

#2 ASML Holding N.V.

Statistics

Revenues

Stock chart

#3 Roche Holding AG

Statistics

Revenues

Stock chart

#4 Novartis AG

Statistics

Revenues

Stock chart

#5 SAP SE

Statistics

Revenues

Stock chart

Why should I be interested in this post?

Related posts on the SimTrade blog

Useful resources

About the author

Top 5 companies by market capitalization in China

Introduction to market capitalization

Top 5 companies by market capitalization in China

#1 Tencent Holdings Limited

Statistics

Revenues

Stock chart

#2 Alibaba Group Holding Limited

Statistics

Revenues

Stock chart

#3 Meituan

Statistics

Revenues

Stock chart

#4 JD.com, Inc.

Statistics

Revenues

Stock chart

#5 Ping An Insurance (Group) Company of China, Ltd

Statistics

Revenues

Stock chart

Why should I be interested in this post?

Related posts on the SimTrade blog

Useful resources