With a market capitalization of 7.056 trillion U.S. dollars, Saudi Aramco was the Richest Brands in the World. Rounding out the top five were some of the world’s most recognizable brands: Microsoft, Apple, Amazon, and Google’s parent company Alphabet. Saudi Aramco led the ranking of the world’s most profitable companies.
How are market value and market capitalization determined?
Market value and market capitalization two terms frequently used – and confused – when discussing the profitability and viability of companies. Strictly speaking, market capitalization (or market cap) is the worth of a company based on the total value of all their shares; an important metric when determining the comparative value of companies for trading opportunities.
On the other hand, market value technically refers to what a company is worth in a much broader context. Determined by multiple factors, including profitability, corporate debt, and the market environment as a whole. In this sense, it aims to estimate the overall value of a company, with share price only being one element. Market value, therefore useful for determining whether a company’s shares are over-or undervalued, and in arriving at a price if the company is to be sold. Such evaluations are generally made on a case-by-case basis though, and not regularly reported. For this reason, market capitalization is often reported as market value.
Today’s article is about the top 10 of the most Richest Brands in the World.
The rating is based on market capitalization.
1. Saudi Aramco
Industry: Oil and gas production, refining.
Products: Oil, natural gas and other petrochemical products.
After the successful issue of shares on the stock exchange, Saudi Aramco (Saudi Arabian Oil Company) became the most Richest Brands in the World. It has also officially published its financial statements. Shortly after the release of the shares on the Tadawul stock exchange, the company’s value almost reached 1.9 trillion dollars.
The oil giant also exceeded all expectations with the issued shares: its IPO considered one of the most successful in history.
2. Apple inc.
Industry: electronics, information technology.
Products: Personal computers and tablets, mobile phones, audio player
For a long time, Apple was the most valuable company in the world. But due to the situation with the disappointing iPhone sales, it lost its primacy. Yet the situation is much better now: the company is also winning its positions back. Today, Apple is the second in terms of market capitalization. At the same time, the company continues to occupy the first position at the most expensive brands’ list.
Industry: software development.
Products: Microsoft Office, Microsoft Windows, Xbox.
The third Most Valuable Company in the World is Microsoft. The internationally famous corporation was founded in 1975 by Bill Gates, who is one of the richest men in the world by now. At that time, Microsoft was also the first software developer that suggested using packaged software for home computers that would thereby make the PC experience user-friendly and intuitive.
Today, Microsoft is one of the leading companies in the PC software market as well. It releases new-generation Windows operating systems, a set of applications to work with documents called Microsoft Office, and many other software programs. Besides, Microsoft produces its own mobile devices and accessories, video, audio, and office equipment.
4. Amazon Inc.
Industry: Retail business
Today, it ranks fourth in the list of the most valuable companies. Amazon is an American retail company that sells and delivers various goods over the internet. Internet users, suppliers, and producers can sell any goods on their own by using Amazon’s website as an online venue.
The company’s major business line is selling various. Moreover, The popularity of service soared thanks to high-quality goods, low prices, prompt delivery, and a wide assortment.
5. Delta Electronics (Thailand)
Industry: Electronics and automation.
Delta Electronics (Thailand) Public Company Limited is a subsidiary of Delta Electronics Inc. It focuses on the manufacture of electronic products that include various power supplies, industrial. The company also manufacture construction automation systems, infrastructure for alternative energy and electric transport, and much more.
The parent company was founded in 1971 and a regional office in Thailand was established in 1988. And now, in terms of market capitalization, the subsidiary is also aiming to become the Richest Brands in the World.
6. Alphabet Inc.
Google, the internationally famous Internet company, recently changed its official name to Alphabet because the company was out of the scope of Google search engine long ago, and now it owns plenty of other companies as well. Sergey Brin and Larry Page, who jointly created the mega-company in 1998, are the heads of the Internet holding.
More than thirty popular services and sub-companies are part of the holding: AdWords, Android, YouTube, to name a few.
7. Tesla, Inc.
Industry: Automotive and solar energy.
Tesla is the world’s largest electric vehicle manufacturer, which also produces solar panels and batteries. At the end of 2020, Tesla and 27 other US companies formed the Zero Emission Transport Association (ZETA), which will promote the transition of all US vehicles to electric traction. The company currently has several electric vehicle models, including a sedan, crossover, roadster, and even a large truck for cargo.
Tesla was founded in 2003 by Martin Eberhard and Mark Tarpenning, and Elon Musk became the main investor of the company and the chairman of the board of directors only in 2004. Although Musk was not the founder of the startup, he was the one to help the company achieve such heights and worldwide fame.
Developed by Mark Zuckerberg in February 2004, Facebook social network currently visited by more than 2 billion people every day. And the market value of $757 billion is simply an astronomical indicator of popularity for an Internet project.
Today, Facebook yields more than $22 billion net yearly profit due to online advertising. Moreover, the company is a leader in this TOP 10 list in terms of profitability, since its net profit increased by 54% within the past year alone.
Products: Social networking, instant messaging, mass media, web portals, etc.
Tencent is a venture company, a conglomerate, an investment holding, and one of the largest companies in the gaming industry. This Chinese giant, founded in 1998, occupies the 9th position in the ranking of the most expensive companies worldwide.
Its services include social networks, mobile games, music, web portals, payment systems, e-commerce, Internet services, smartphones, and multiplayer online games, which are also among the largest and most successful in the world in their respective categories.
10. Alibaba Group
Products: E-commerce, online auction hosting, online money transfers, mobile commerce.
The Alibaba company is one of the biggest virtual trading platforms in China and the world, attracting the attention of buyers by both affordable prices and a wide range of goods presented. Founded on April 4, 1999, the company provides consumer, business-consumer and business services through web portals, as well as electronic payment services, a search system for customers, and cloud computing.