Global Top 100 companies by market capitalisation

Global Top 100 companies by market capitalisation

May 2021

Contents

Highlights and trends Methodology Complete ranking Key Contacts Appendix: Value distribution in calendar year 2020

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PwC | Global Top 100 companies by market capitalisation

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Highlights and trends

PwC | Global Top 100 companies by market capitalisation

COVID-19 backdrop to this report

"Looking beyond the dislocation caused by the initial outbreak of COVID-19, the market capitalisation of the Global Top 100 companies has increased by a remarkable 51% between March 2019 and March 2021, compared to an increase in the MSCI World Index of 33%. Led by the US, this highlights the ability of the largest companies to leverage technology and grow at scale over this period, breaking away from the growth trend line over the past decade."

Ross Hunter - IPO Centre Leader, PwC United Kingdom

As the COVID-19 pandemic took hold on the global economy in early 2020, the MSCI World Index declined by 21% and market volatility increased dramatically peaking at 83 on 16 March 2020. The world's largest companies were not immune to significant reductions in market value, with the value of the Global Top 100 Companies as at Mar-2020 declining by 15% in the first quarter of 2020.

Since the declines seen in early 2020, global equity markets have not only recovered lost ground, but have surged to record highs - with economic recovery being supported by government and central bank policies responding to the devastation of the COVID-19 pandemic.

The market capitalisation of the Global Top 100 companies (as at March 2021) increased by 48% ($10.3tn) to $31.7tn from 31 March 2020 to 31 March 2021.

This report analyses the position of the Global Top 100 Companies and highlights the remarkable changes in the composition of the list, comparing the Global Top 100 Companies by market capitalisation as at March 2020 and March 2021.

CBOE Volatility Index

90 80 70 60 50 40 30 20 10

0 Jan 20 Apr 20 Jul 20 Oct 20 Jan 21 Mar 21

MSCI World Index

1 Apr 2020 ? 31 Mar 2021: 58%

3000

2500

2000

1500

1000 1 Jan 2020 ?

500 31 Mar 2020:

0

21%

Jan 20 Apr 20

Jul 20

Oct 20

Jan 21

Mar 21

Change in market capitalisation of the Global Top 100 companies (Mar-2020 to Mar-2021)

$bn

%

US

7,456 57%

Europe

523 18%

China and its regions*

1,244 42%

Rest of the world

1,046 42%

Total

10,269

48%

* China and its regions includes; Mainland China, Hong Kong SAR and Taiwan

Market capitalisation of Global Top 100 companies ($bn)

35,000

31,740

30,000

25,000 20,000 15,000

20,035 21,075 21,471 16,245 15,577 17,438

10,000

5,000

0 2015 2016 2017 2018 2019 2020 2021

PwC | Global Top 100 companies by market capitalisation

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Highlights

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Companies

? The market capitalisation of the Global Top 100 companies increased by 48% in the year to March 2021, resulting in a record breaking market capitalisation of $31.7tn.

? Apple regained its crown as the world's largest company by market capitalisation with a March 2021 valuation 6% and 13% ahead of Saudi Aramco (2nd) and Microsoft (3rd) respectively. Apple's market capitalisation reached an all time high in January 2021 ($2.4tn).

? Amazon's market capitalisation increased by 61% in the year to March 2021, supported by the growing "stay-at-home economy" seen throughout 2020 and into 2021, although Amazon did not move up from fourth position.

? There were no direct entrants to the Global Top 100 companies via IPO despite a buoyant IPO market. The threshold to enter the list is now $129bn, potentially creating a barrier to future entrants via IPO.

? China Mobile was the only company in the Global Top 100 that saw a decrease in market capitalisation in the year to March 2021.

? Tesla's market capitalisation increased from $96bn in March 2020 to $641bn in March 2021, an astonishing 565% increase and a clear outlier in the top ten risers.

? Food delivery platform, Meituan, saw the second largest increase in market capitalisation in relative terms (221%).

? Volkswagen returned to the Global Top 100 with a $165bn market capitalisation as at March 2021, a 165% increase as compared to March 2020, driven by strong investor support and consumer demand for its transition to electric vehicles.

? Another returnee was Boeing with a 77% increase in market capitalisation from March 2020 to March 2021, perhaps surprising given ongoing regulatory challenges and suppressed demand across the aviation industry due to the pandemic.

Countries

? All regions and component countries experienced a relative increase in market capitalisation of the companies listed in the Global Top 100.

? Switzerland was the only country failing to see double digit market capitalisation growth from its representatives in the Global Top 100 companies.

? In-line with expectations, the United States continues to dominate the Global Top 100 in terms of market capitalisation and number of companies, with 59 companies accounting for 65% of total market capitalisation.

? The United Kingdom saw the largest net change in the number of companies in the Global Top 100. Three companies departed the list this year, resulting in a 33% reduction in the market capitalisation of Global Top 100 UK companies from March 2020 to March 2021.

? BHP Billiton's return to the Global Top 100 has resulted in Australia being included the March 2021 Global Top 100 companies.

PwC | Global Top 100 companies by market capitalisation

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Highlights

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Sectors

? Technology continues to be the largest sector in terms of market capitalisation ($10.5tn). Global Top 100 Technology companies saw a 71% increase as compared to their value as at March 2020, in-line with the wider industry index performance.

? All sectors represented by the Top 100 list saw substantial increases in market capitalisation in the year to March 2021, ranging from 25% to 75%.

? Global Top 100 companies in the cyclical sectors, Industrials and Basic Materials, outperformed other sectors in the Global Top 100 (other than Technology) and their respective industry index performance.

? The worst-performing sectors in the Global Top 100 were Health Care, Energy and Utilities. The Health Care and Utilities industry index performance was also relatively poor, whereas the wider Energy sector performed relatively well.

PwC | Global Top 100 companies by market capitalisation

Unicorns ? As a point of comparison, in the private company domain, half of the Top 100 unicorns valued at

$1bn+ as at 31 March 2021 were from the US, broadly in line with the Global Top 100 of public companies. ? The value of the top 100 unicorns grew by 30% to $1.1tn in the year to March 2021, behind the public companies' market capitalisation increase in the same period (49%). ? 24 (63%) new entrants into the Top 100 unicorns came from the US, followed by Europe with six new unicorns, five of which were from the United Kingdom. Over half of all new entrants were Internet software and services or Fintech companies. ? Unicorns took advantage of a buoyant IPO market towards the end of 2020 and early 2021, with 17 companies included in the March 2020 Top 100 unicorns successfully executing an IPO (March 2020: 7). The US was the destination of choice for previous Top 100 unicorns.

Shareholder Distributions (dividends & buybacks) ? A total of $824bn (2019: $973bn) was distributed by companies in the Global Top 100 companies in

calendar year 2020, predominantly in the US. ? As companies respond to the challenges of the global pandemic, many dividend and share buyback

programmes were suspended in the 2020 calendar year, resulting in reduced distributions relative to prior years. ? Technology companies accounted for 31% of total shareholder distributions in the same period (2019: 28%); Apple continues to top the list, returning $87bn in the year, followed by Saudi Aramco ($70bn).

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Total market capitalisation of the Global Top 100 companies

? The market capitalisation of the Global Top 100 companies increased by 48% in the year to March 2021, representing the most significant annual increase on record.

? Apple regained its crown as the world's largest company by market capitalisation with a March 2021 valuation 6% and 13% ahead of Saudi Aramco and Microsoft respectively.

? The gap between the largest and smallest companies on the list is $1.9tn as at March 2021, driven by Apple's 84% increase in value from March 2020.

? In March 2021 the market capitalisation of the smallest company in the Global Top 100 (Anheuser-Busch) was $46bn higher than the smallest company in March 2020 (BP).

PwC | Global Top 100 companies by market capitalisation

Total Market Capitalisation of Global Top 100 companies as at 31 March

Market capitalisation ($bn)

35,000

30,000

25,000

20,000 15,000

12,047

12,974

12,917

13,597

15,020

10,000

5,000

0

2010

2011

2012

2013

2014

Market capitalisation of top and bottom companies

2,500

16,245 2015

Market capitalisation ($bn)

2,000

1,500

1,000 500

Exxon

Mobil

PetroChina 329

417

Apple 559

61

69

64

0 2010

2011

2012

Number 1

Source: Bloomberg with PwC analysis

Apple 416 70

2013

Apple 469

Apple 725

81

85

2014 2015 Number 100

15,577

2016

Apple 604 76 2016

17,438

2017

Apple 754 87 2017

31,740 20,035 21,075 21,471

2018

2019

2020

2021

Apple 2,051

Saudi Aramco 1,602

Apple Microsoft

851

905

97

99

86

129

2018 2019 2020 2021

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Among the top five, Apple overtakes both Microsoft and Saudi Aramco to become the most valuable public company

? The top end of the rankings continue to be dominated by Technology and ecommerce, representing four of the five highest-ranked companies.

? Apple's share price hit record highs in January 2021 supported by first quarter financials showing positive sales growth despite the ongoing challenges of COVID-19, including temporary point of sale closures.

? Saudi Aramco was in second position at the end of March 2021, ahead of the other "Big Tech" companies.

? Notwithstanding the growing "stay-athome economy" seen throughout 2020 and into 2021, Amazon remained in fourth position in the year to March 2021.

Market Capitalisation ($bn)

3,000 2,500 2,000 1,500 1,000

500 0

Apple

Saudi Aramco

Source: Bloomberg with PwC analysis

Microsoft

Amazon

Alphabet

PwC | Global Top 100 companies by market capitalisation

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Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 31 Mar-21

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