Market capitalization refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment community uses this figure to determine a company’s size, as opposed to using sales or total asset figures.
There are generally four categories of market capitalisation based on the size and value. Companies with USD $10 billion and more is a large cap. Mid capital comprises of USD $2 billion to $10 billion caps. Companies with capital ranging from USD $300 million to $2 billion come under the banner of small capital firms and micro – capital companies have a capital of below USD $300 million. The following are the top five companies in the world categorised according to their market capitalisation value as of 2018.
- Apple Inc.
Apple Inc. was founded in 1976 and is currently headquartered in California, United States of America. It sells consumer electronic goods which are a benchmark of quality and style for many other companies in the same industry. Its products are extremely famous among the public throughout the globe due to its durability and style.
Its market capitalization as of 2018 is estimated at USD $953.34 billion dollars which is the highest in the world.
- Amazon
Amazon is the largest e-Commerce Company headquartered in Seattle, Washington. The company serves throughout the globe including developing nations markets like India etc. It has over 200 million products to offer to the public. There are country specific apps and websites dedicated by Amazon to each of its servicing countries. The company takes customer support very seriously and has different teams for the respective countries.
Market Capitalization: – USD $891.27billion dollars.
- Alphabet
Alphabet was officially founded in 2015 by Larry Page (CEO) and Sergey Brin (President) which is currently headquartered in California, United States of America. It is the parent company of the worlds most used search engine named Google Inc. The reorganization of google into Alphabet was completed in October 2015. Google currently sells only one physical product that is its new Google Pixel phone which is available almost throughout the world (online only), other than that there are online products and services which can be used at no or minimal costs on their website by visiting Google.com like Email, Google maps, Google finance and many more. Before Google Alphabet owned several over companies like Waymo, Verily, and CapitalG etc.
Market Capitalization: – USD $878.96 billion dollars.
- Microsoft
Microsoft is a software-based company headquartered in Washington, United States of America. It is the company owned by Bill Gates. The company sells, supports, licenses and manufactures consumer software’s and electronics like tablets, mobile phones etc. but majorly deals in software. It also has various products and services to offer like Windows, Skype, and Xbox Live, Bing, LinkedIn etc.
The company has a market capitalization of USD $847.69 billion dollars.
- Berkshire Hathaway
Established in 1839 in the United States of America, Berkshire is one of the biggest companies with its spread across innumerable sectors like investments, utilities, food processing, restaurants, media, aerospace and many more. The company also has made some big investments in other companies like Mars, Wells Fargo, Coca-Cola etc. and itself owns companies like Dairy Queen, Fruit of the loom, Helzberg Diamonds and many more.
Market Capitalization: – USD $495.27 billion dollars.
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1 comment
Great post. Thanks for the information.