PwC : Global Top 100 companies (2020)
This report ranks the Global Top 100 public companies by market capitalisation as at March 2020 and compares how the value and components of the Global Top 100 have evolved since March 2019, with a further look back to March 2009. It identifies the risers and fallers and highlights country and industry dynamics, providing a view on how the global landscape has changed.
The analysis compares the Global Top 100 companies on an annual basis, with a 31 March reference date. Given the significant impact of the COVID-19 pandemic on equity markets in the first quarter of 2020, in this edition we have also analysed the position at 31 December 2019 for companies included in the Global Top 100 at 31 March 2020.
The analysis will be further updated as at June 2020 and September 2020, to assess the evolving impact on the Global Top 100 companies as the world recovers from the impact of the virus, and markets refine their views on sector and company prospects.
Key highlights
Market capitalisation
- The market capitalisation of the Global Top 100 companies increased by 20% ($4,301bn) from March to December 2019, before decreasing by 15% ($3,905bn) in the three months to March 2020 as COVID-19 took hold.
- Saudi Aramco joined the Global Top 100 this year having undertaken the largest IPO in history in December 2019. Saudi Aramco entered the list in 1st position and has retained this position ever since (March 2020 market capitalisation: £1,602bn).
- Even with the COVID-19 disruption, the market capitalisation of Microsoft and Apple exceeded one trillion dollars as at March 2020. Amazon has since joined the “four-comma club”, boosted by a surge in demand created by movement restrictions put in place in an attempt to contain COVID-19.
Sector performance
- Other than Oil & gas, all sectors represented by the Global Top 100 appreciated from March to December 2019 reflective of buoyant global equity markets throughout 2019.
- In the subsequent three months to March 2020, all sectors declined by between 1% and 37%:
- The Oil & Gas sector was hit hardest by the widespread impact and uncertainties caused by COVID-19, which magnified oil and gas price weaknesses;
- Financials also suffered, losing 23% in this period;
- Consumer Services was helped by a 16% ($23bn) rise in Netflix, one of only ten companies seeing an increase in market capitalisation from December 2019 to March 2020; and
- Technology companies lost 11% market capitalisation, extinguishing the 24% increase from March to December 2019.
Top 100 Unicorns
The value of the Top 100 Unicorns grew by 5% to $853bn as at 31 March 2020.
The US dominates the Top 100 Unicorns at 31 March 2020, representing half of the list in terms of number of companies and value.Behind the US is China and its regions, accounting for 26 (35% by value).
Mainland China internet company (and parent company of TikTok) Bytedance, maintains its position as the most valuable Unicorn with a valuation of $75bn. There are now 23 Decacorns (a unicorn with a value >$10bn) in the Top 100 Unicorns.
There was a higher level of turnover in the constituents of the Top 100 Unicorns in the year to 31 March 2020 as compared to the prior twelve months. There were 27 new entrants, 10 IPO/M&A exits and 17 companies dropping out.
“In the period to 31 December 2019, the Global Top 100 market capitalisation gained an impressive 20%, including the boost from Saudi Aramco joining at the top of the list. In the following three months, whilst their overall value fell 15%, the companies within the Global Top 100 outperformed their industry indices, an early indication that investors value the defensive qualities of the larger companies and their scope to invest in the post COVID-19 world.” Ross Hunter – IPO Centre Leader, Partner, PwC United Kingdom
https://www.pwc.com/gx/en/services/audit-assurance/publications/global-top-100-companies.html
