Market Cap in the Philippines: What You Need to Know Before Investing

Michael Dumaloan

09.11.2024

Market capitalization, or “market cap” for short, is a financial metric used to measure the value of a publicly traded company. It’s calculated by multiplying the total number of a company’s outstanding shares by its current stock price. Market cap is an important indicator of a company’s size, growth potential, and overall financial health.In this blog post, we’ll explore the concept of market cap and take a closer look at the top 5 companies with the highest market cap in the world. So sit back, relax, and get ready to learn something new. Whether you’re a seasoned investor or just starting out, this post is for anyone over 18 years of age who is interested in gaining a deeper understanding of the financial world. Let’s dive in!

Why Market Cap Matters in the Philippines

Let’s start with an overview of the Philippine stock market. The Philippine Stock Exchange (PSE) is the primary stock exchange in the country, and it has been in operation since 1927. The PSE currently has over 250 publicly traded companies, which cover a variety of sectors such as banking, real estate, and telecommunications.

Now, let’s talk about how market cap affects the Philippine economy. Market cap is simply the total value of a company’s outstanding shares of stock. When a company’s market cap increases, it means that its stock price is rising, and investors are willing to pay more for a piece of ownership in the company. This, in turn, indicates that the company is performing well financially, which can have a positive impact on the overall economy.

For example, if a large company in the Philippines, such as Ayala Corporation or SM Investments, experiences a significant increase in market cap, it can lead to increased investment in the Philippines from both local and foreign investors. This can lead to job creation, higher tax revenue for the government, and an overall boost to the country’s economic growth.

Now, let’s discuss the importance of market cap for Filipino investors. As an investor, understanding a company’s market cap can help you make informed decisions about which stocks to invest in. Generally, larger companies with higher market caps are considered more stable and have a lower risk of failure than smaller companies with lower market caps.

Additionally, knowing the market cap of a company can help you determine its potential growth. For example, if a company has a relatively small market cap in comparison to other companies in its sector, it may have more room for growth and could potentially provide higher returns on investment.

Top 5 companies with the highest market cap

Before we dive into the top 5 companies with the highest market cap in the world, let’s first define what market cap is. Market capitalization, or market cap, is the total value of a company’s outstanding shares of stock. It’s calculated by multiplying the company’s current stock price by the total number of outstanding shares.

In the Philippines, market cap refers to the total value of a publicly traded company’s outstanding shares on the Philippine Stock Exchange. It’s an important metric used to measure the size and value of a company.

Now that we know what market cap is, let’s take a look at the top 5 companies with the highest market cap in the world.

Company #1: Apple Inc.

Overview:

Apple Inc. is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services. The company’s most popular products are the iPhone, iPad, and MacBook. Apple is also known for its successful marketing campaigns and loyal fanbase.

History:

Apple was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company gained mainstream success with the release of the iPod in 2001, which revolutionized the music industry. Today, Apple is the world’s largest technology company by revenue and the first company in history to be valued at over $1 trillion.

Current Market Cap:

As of April 2023, Apple’s market cap is $2.9 trillion.

Company #2: Microsoft Corporation

Overview:

Microsoft Corporation is an American multinational technology company that develops, licenses, and sells computer software, consumer electronics, and personal computers. The company is best known for its operating system, Windows, and office productivity suite, Microsoft Office.

History:

Microsoft was founded in 1975 by Bill Gates and Paul Allen. The company rose to prominence with the release of the Windows operating system in 1985. Today, Microsoft is one of the world’s most valuable companies, with a strong focus on cloud computing and artificial intelligence.

Current Market Cap:

As of April 2023, Microsoft’s market cap is $2.5 trillion.

Company #3: Alphabet Inc.

Overview:

Alphabet Inc. is an American multinational conglomerate that specializes in internet-related services and products. The company is best known for its search engine, Google, but also includes subsidiaries such as YouTube, Google Maps, and Google Drive.

History:

Alphabet Inc. was founded in 2015 as a holding company for Google and its various subsidiaries. The company was created to restructure Google and make it more accountable to investors. Today, Alphabet Inc. is one of the most valuable companies in the world and continues to dominate the internet industry.

Current Market Cap:

As of April 2023, Alphabet Inc.’s market cap is $2.3 trillion.

Company #4: Saudi Aramco

Overview:

Saudi Aramco is a Saudi Arabian multinational petroleum and natural gas company. It’s the world’s largest oil company and is responsible for 12% of the world’s oil production. The company’s main focus is on oil exploration, production, refining, and marketing.

History:

Saudi Aramco was founded in 1933 as the California-Arabian Standard Oil Company. It was nationalized by the Saudi Arabian government in 1980 and renamed Saudi Aramco. Today, it’s one of the most profitable companies in the world and is owned by the Saudi Arabian government.

Current Market Cap:

As of April 2023, Saudi Aramco’s market cap is $2.2 trillion.

Company #5: Facebook, Inc.

Overview:

Facebook, Inc. is an American social media and technology company that specializes in online social networking. The company’s primary product is the Facebook platform, which allows users to connect and share content with family and friends. Facebook also owns subsidiaries such as Instagram and WhatsApp.

History:

Facebook was founded in 2004 by Mark Zuckerberg, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes. The company gained mainstream success with the explosion of social media in the late 2000s and early 2010s. Today, Facebook is the world’s largest social media platform and continues to expand its reach.

Current Market Cap:

As of April 2023, Facebook, Inc.’s market cap is $1.1 trillion.

Conclusion

And there you have it, the top 5 companies with the highest market cap in the world. As you can see, these companies are some of the most valuable and profitable in the world, with a strong focus on technology