A company's Market Capital is the reflection of a company's worth in the real world. To be precise, a market cap is the company's total value of shares of stocks. Market capital sometimes referred to as “Market Cap” is used to calculate the value of the company. It is calculated by multiplying the current share price with the total outstanding shares. For example, if a company's current share price is 5 dollars with 500 million outstanding shares, its market cap would be $5 Billion.
It is worth noting that a huge market cap is not related to the company's revenue and earning potential. A large-cap company may not generate equal or more revenue than a mid-cap or other large-cap company. For example, as of 2023, Apple is the most valuable company with a market cap of $2.951 T. However, it reports fewer revenue figures than Walmart, which reports the most revenue out of any other company in the USA (638.78 B). Furthermore, if we compare Walmart's competitor Amazon, which is also one of the largest companies in the world, Walmart posts better revenue figures. Also, to give you a clearer picture, Walmart is not in the top 10 list of the world's most valuable companies.
Therefore, it is true to say that the market cap represents a company's worth in an open market along with the company's size. Similarly, it also shows the future prospects as it reflects what investors are ready to pay for its stocks. Even with low revenue figures, some companies found their place in the top 10 list due to the staggering market cap, which is a result of optimism shown by investors in potential growth. So, let’s find out some of the largest market cap companies in the world.
A comprehensive list of top companies by market cap
| Company | Market Cap | Revenue | Sector | Country |
| Apple | $2.951 T | $383.28 B | Technology | USA |
| Microsoft | $2.813 T | $218.31 B | Technology | USA |
| Saudi Aramco | $2.146 T | $502.35 B | Oil & Gas | Saudi Arabia |
| Alphabet(Google) | $1.716 T | $297.13 B | Technology | USA |
| Amazon | $1.526 T | $554.02 B | E-commerce | USA |
| Nvidia | $1.191 T | $32.68 B | Technology | USA |
| Meta | $860.13 B | $126.95 B | Social Media | USA |
| Berkshire Hathaway | $785.76 B | $401.77 B | Diversified Investment | USA |
| Tesla | $750.47 B | $95.92 B | Automobile | USA |
| Eli Lilly | $561.83 B | $32.07 B | Pharmaceutical | USA |
1. Apple Inc.
Let’s be honest, we all desire to use the Apple ecosystem right? The brand image along with technology innovations made Apple the biggest company in the world. Apple makes technology-based gadgets such as Smartphones (also referred to as iPhones), Tablets, Personal computers, wearables, and more. Apart from that, Apple also manufactures its own chip processors and runs an operating system, called IOS.
With a staggering market cap of $2.951 Trillion, Apple recorded a revenue of $383.28 Billion. What’s more, Apple was the first company to reach a market cap of $1 trillion and also the first company to $2 trillion in 2018 and 2020, respectively. Considering the growth of Apple, it is just a matter of time until Apple becomes the first company to reach $3 trillion in market cap.
Insights -
- Current CEO - Tim Cook
- Market Cap - $2.951 Trillion
- Revenue - $383.28 Billion
- Gross Profit - $166.82 Billion
- Founded by - Steve Jobs, Steve Wozniak, Ronald Wayne
2. Microsoft
The Technology giant and licensor of software, Microsoft is the second largest company in the world, as per Global Ranking and Investopedia. Microsoft’s main offering is its flagship Windows operating system, without which we could not imagine our lives. Since Satya Nadella took over as the CEO, Microsoft has diversified its vision into Office Suite, cloud platform, Xbox gaming, and Web browser. And as a result, Together its offerings generated a massive revenue of $218.31 Billion. As of 2023, Microsoft is investing heavily in AI and VR gaming. If things turn out well, Microsoft could replace Apple as the most valuable company in the world.
Insights -
- Current CEO - Satya Nadella
- Market Cap - $2.81 Trillion
- Revenue - $281.31 Billion
- Gross Profit - $151.06 Billion
- Founded by - Bill Gates, Paul Allen
3. Saudi Aramco
The Kingdom of Saudi Arabia is one of the biggest suppliers of crude oil, Thanks to Saudi Aramco. It is the third largest company in the world and the only oil and gas sector company in the top 10 biggest companies list. Because of its position in the world, Saudi Aramco puts Saudi Arabia in the top position among OPEC members. Due to its strategic location, Saudi Aramco has a massive amount of oil reserves. It also records one of the highest revenues in the world. Thus, Saudi Aramco is one of the most valuable companies in the world.
Insights -
- Current CEO - Amin H. Nasser
- Market Cap - $2.14 Trillion
- Revenue - $502 Billion
- Gross Profit - $283.65 Billion
4. Alphabet (Google)
We all have heard about Google right? Alphabet is the parent company of search engine giant Google. In the technology space, Alphabet is the third largest company in the world. Headquartered in Mountain View, California, Alphabet was created in 2015 and took Google and other subsidiaries under it. Just like Apple, Google operates an operating system (Android), also the most widely used OS. The massive revenue of $297.13 Billion in the previous year came from search engines, operating software, cloud service, multiple applications, advertisement, and smartphone business.
Insights -
- Current CEO - Sundar Pichai
- Market Cap - $1.71 Trillion
- Revenue - $297.13 Billion
- Gross Profit - $165.75 Billion
- Founded by - Larry Page; Sergey Brin
5. Amazon
With a presence in over 50 countries, the e-commerce giant is the world's biggest e-commerce platform. Amazon was established in a garage in the year 1994, today it is considered as the most valuable retailer. Initially, Amazon was started as an online marketplace for books but later transitioned into an e-commerce platform. It was founded by Jeff Bezos, who held the richest man position between 2017-2021. Despite being an e-commerce platform, amazon also offers technology services such as cloud computing and web services. Furthermore, it also runs a streaming platform named Amazon Prime with 200 million active users worldwide, competing directly with Netflix.
Insights -
- Current CEO - Andy Jassy
- Market Cap - $1.526 Trillion
- Revenue - $554 Billion
- Gross Profit - $256.20 Billion
- Founded by - Jeff Bezos
6. Nvidia
Every gaming enthusiast knows and loves Nvidia. Reason? Cutting-edge graphic processing units (GPU). Nvidia is the world largest GPU manufacturer in the world. Recently Nvidia posted its best-ever quarter result, representing its continued growth. It was founded in 1993 by Jensen Huang in Santa Clara, California. Apart from GPUs, Nvidia also invested heavily in AI and gained a market share of approximately 95%. A massive 217.82% return has been generated by investors on Nvidia stock in a single year (2022-2023)
Insights -
- Current CEO - Jensen Huang
- Market Cap - $1.19 Trillion
- Revenue - $32.68 Billion
- Gross Profit - $21.12 Billion
- Founded by - Jensen Huang
7. Meta (Facebook)
The company that started the social media boom can’t be excluded from the list of largest companies. Meta, previously Facebook, is the only Social media company to reach a market cap of $1 trillion. However, it falls down to the $850 billion level. Meta was founded by Mark Zuckerberg, Eduardo Saverin, Andrew McCollum, Chris Hughes, and Dustin Moskovitz in 2004. Meta acquired a total of 91 companies in a span of two decades including WhatsApp and Instagram. Besides social media platforms, Meta offers advertisement services such as Facebook and Instagram ads. Thanks to its advertisement category, Meta managed to post revenues similar to other top companies.
Insights -
- Current CEO - Mark Zuckerberg
- Market Cap - $860 Billion
- Revenue - $126 Billion
- Gross Profit - $101 Billion
- Founded by - Mark Zuckerberg, Eduardo Saverin, Andrew McCollum, Chris Hughes, and Dustin Moskovitz
8. Berkshire Hathaway
Berkshire Hathaway shares are the most expensive shares in the world. A single share of Berkshire Hathaway cost nearly half a million. Initially, it was started as a textile company but later converted into a holding company in 1970. The founder and CEO of Berkshire Hathaway is none other than the legendary investor Warren Buffet. He is also the longest-serving CEO in the entire world. The company holds some of the world's biggest names in its holdings such as Apple, Bank of America, Coca-Cola, and Geico. Which alone makes it one of the biggest companies in the world.
Insights -
- Current CEO - Warren Buffet
- Market Cap - $785.76 Billion
- Revenue - $404.77 Billion
- Gross Profit - $68.17 Billion
- Founded by - Oliver Chace
9. Tesla
The second fastest company to reach the top 10 list is Tesla. The company constantly stays in the news, thanks to its dynamic founder and CEO Elon Musk. The automobile company manufactures electric vehicles such as Tesla Model S and Model Y. It is also the biggest electric car manufacturer in the USA. Apart from electric vehicles, Tesla also made significant progress with self-driving cars and continues to invest in AI to create a self-driving ecosystem. Tesla was founded in 2003. It is also worth noting that out of the top 10 companies, Tesla posts the lowest gross profit numbers as most of its revenue went to R&D.
Insights -
- Current CEO - Elon Musk
- Market Cap - $750.47 Billion
- Revenue - $95.92 Billion
- Gross Profit - $19 Billion
- Founded by - Elon Musk, Martin Eberhard, JB Straubel, Marc Tarpenning, Ian Wright
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10. Eli Lilly and Company
The largest pharmaceutical company that manufactures medicines for the global market. Its product range includes medicines for Diabetes, immunology, and neuroscience. Eli Lilly, also referred to as Lilly added the most amount of market cap in the pandemic times, as it offered treatment for COVID-19. The company is present in 18 countries with its headquarters located in Indianapolis, Indiana. Founded in 1876 by Colonel Eli Lilly, the company sold its product in more than 125 countries. Lilly is also among the most profitable pharmaceutical company in the world.
Insights -
- Current CEO - David A. Ricks
- Market Cap - $561.83 Billion
- Revenue - $32.07 Billion
- Gross Profit - $26.46 Billion
- Founded by - Eli Lilly
Top 10 Companies in the World by Revenue
Although company worth is measured by its market cap, some investors are also interested in a revenue list. In the real world, revenue does not count as the sole measure to calculate the value, as high revenues could be the result of low costs and a high-profit margin. Only four of the largest companies in the world are on the list based on revenue. So, we have jotted down another list of the top 10 companies based on revenue this time.
| Company | Market Cap | Revenue | Sector | Country |
| Walmart | $421.95 B | $638.78 B | E-commerce | USA |
| Amazon | $1.526 T | $554.02 B | E-commerce | USA |
| Saudi Aramco | $2.146 T | $502.35 B | Oil & Gas | Saudi Arabia |
| Sinopec | $85.31 B | $473.53 B | Oil & Gas | China |
| Petro China | $173.78 B | $435.30 B | Oil & Gas | China |
| Berkshire Hathaway | $785.76 B | $401.77 B | Diversified Investment | USA |
| Apple | $2.951 T | $383.28 B | Technology | USA |
| UnitedHealth | $502.78 B | $359.98 B | Healthcare | USA |
| CVS Health | $88.46 B | $347.80 B | Pharmaceutical | USA |
| ExxonMobil | $416.47 B | $346.17 B | Oil & Gas | USA |
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Conclusion
The top ten largest companies by market cap collectively hold more than $14 Trillion worth of market cap. Therefore, these companies are valuable in the eyes of the country's economic value as well. Some of them are the backbone of a country's economy such as Saudi Aramco. The list is dominated by the technological sector with four companies, which together hold approximately a $7-8 trillion market cap. This shows the future prospects of technology and its advancements.
At one point in time, steel and trading companies used to dominate the list but as time progressed, sectors such as automobile, social-media, and pharmaceutical also found their place in the list of top companies in the world. Thus, there is a good amount of diversification in the market.
Frequently Asked Questions (FAQs)
Companies are ranked according to their respective market cap because a company's market cap is equal to the value of share price and total outstanding shares. It is taken into account as the share price itself is affected by other parameters such as revenue, growth, CAGR, promoter holding, etc. Also, the market cap shows the size of a company, which helps make judgments.
The stock price is not affected by the market cap but the other way around. The stock price is one of the parameters in the calculation of market cap. It is calculated by multiplying total outstanding shares (Held by investors + held by promoters and insiders) and the current share price of the market. So when the stock price of a company rises, its market cap increases.
The market cap allows investors to understand the size of the company in the respective sector. Because it is a mixture of share price and total shares, it represents the overall company’s dimension. And, therefore, the higher the market cap, the bigger the company in general.
