The stock price is a good indicator of a firm market value, but the prices of a stock share vary based on the exact number of shares outstanding. Ever wondered why some stocks are so expensive? It’s because the company rarely or has never completed a stock split.
If you’re a safe investor, it’s much better if you put off your income in some secure options such as bonds and term deposits. However, if you’ve got some risk appetite, then investing in stocks will be a great option. As of today, the average yearly stock market return is estimated to be 7%. Moreover, you can maximize your return on investment (ROI) by thinking long-term.
Generally, besides the absolute share price, there are different ways to assess a stock. Here we take a closer look at the biggest companies in the United States and abroad.
Largest Firms By Stock Price
The Berkshire Hathaway (BRK.A), owned by Warren Buffet is the most expensive share that has been traded publicly. As of January 2022, the company traded at $458.675 a share. However, it was on January 14, 2022, when the company hit a new all-time high at $485,379. This can be attributed to the founder’s idiosyncrasies and incredible shareholder gains.
The next firm, behind Berkshire Hathaway with regards to the nominal share price, is NVR. As of January 2022, the company traded at $5,154.98 a share. The third company behind NVR is the Seaboard Corporation (SEB), which traded at $3,731.01, followed closely by Amazon.com, trading at $2852.86, and Alphabet, Inc. trading at $2,607.03 per share.
Top Firms By Market Cap
In terms of market capitalization, as of Jan 2022, Apple is the largest organization at a whopping $2.652 trillion, closely followed by Microsoft at $2.222 trillion, followed by Google at $1.725 trillion, and followed by Amazon at $1.446 trillion and Meta at $843.34 billion.
PetroChina (PRT) a Chinese energy company reached a market value of approximately $1 trillion back in 2007. Nevertheless, this valuation never lasted. After only 15 years, the company’s market valuation currently stands at only $146.95 billion.
Top Firms By Revenue
When it comes to the largest companies around the world in terms of revenue, Walmart stands out. As of 2021, Wal-Mart’s revenue stands at $523,964 billion. Wal-Mart was closely followed by State Grid with revenue of $383,906, followed by China Petroleum with $379,130 billion, and Amazon at 280,522 billion.
The Sinopec Group takes the fifth position with annual revenue of $407,009. Apple took the 6th position with $260,174 billion, followed by CVS Health at $256,776 billion.
According to companies based in the United States 2020 performance report, Walmart still holds the top spot, with Amazon following closely. Exxon Mobile and Apple rank third and fourth respectively. Healthcare brands took the 5th, 7th, and 8th spots: with the UnitedHealth Group generating 242.15 billion, the CVS $256.78, and the McKesson $231.05 billion.
Warren Buffets Berkshire took the 6th spot with annual revenue of $254.62 billion and the 10th and 9th spot were taken by AmerisourceBergen and AT&T at $179.59 and $181.19 billion in annual revenues respectively.
Top Private Firms
With regards to private firms, Forbes ranks Cargill, as the biggest privately owned U.S. firm with yearly revenue of $134.4 billion. As of January 2022, the Minnesota-based Cargill has 155,000 employees. Koch Industries took the second spot with revenue of $115 billion and 122,000 employees. Publix Super Markets, a leading grocery chain took the third spot with yearly revenue of $44.9 billion and 227,000 employees.
H-E-B and Mars took the 5th and 4th biggest private companies, which generate $32.8 billion and $40 billion, respectively. Each of these companies employs more than 100,000 employees.
For starters, investing in expensive stocks may seem impossible to an average investor. Over the past few years, Apple has largely been considered the most prized publicly traded firm of all time. Even though Microsoft rose and hit the $2 trillion cap back in June 2021, it’s definitely possible for another form’s market cap to exceed such measures and perhaps though less likely, another firm will ultimately surpass Warren Buffet’s Berkshire as the highest-priced stock.