10 Most Valuable Companies in 2020 Worth 12% of Global GDP -Banke research

Recent data presented by Banke research revealed the top ten most valuable companies based on market capitalization as Apple is the most valuable company with a market capitalization of $2.09 trillion or 2.48% of the global GDP.

The market capitalization are cumulatively worth $10.06 trillion. The value is as of December 13, 2020.

The Banke research attempted to interpret the outlook of the most valuable companies in comparison to the global GDP amid the pandemic. According to the research report

Health crisis inflicted high and rising human costs worldwide, and the necessary protection measures severely impacted economic activity. As a result of the pandemic, the global economy contracted. When comparing growth, the overviewed companies have witnessed rapid growth, unlike the global economy.”

Microsoft Corporation is the second most valuable entity at $1.59 trillion in market capitalization.

Below are list of top 10 Most Valuable Firms in 2020

1.Apple :with a market capitalization of $2.09 trillion or 2.48% of the global GDP.

2.Microsoft Corporation:valuable entity at $1.59 trillion in market capitalization.

3.E-commerce giant Amazon has t $1.55 trillion in market capitalization

4.Alphabet at $1.22 trillion.
5. Social media firm Facebook at $0.79 trillion.
6.Alibaba Group ranked sixth with a market cap of $0.72 trillion
7.Tesla at $0.59 trillion
8.Berkshire Hathaway ranks in the eight spots with a valuation of $0.55 trillion,
9. Visa at $0.49 trillion.
10.Taiwan Semiconductor Manufacturing Company Limited is the tenth most valuable company with a market capitalization of $0.47 trillion.

Methodology

To this net brand earnings number, the research company applied the average price-to-earnings multiple over the past three years to arrive at the final brand value. For privately held outfits they applied earnings multiples for comparable public companies.

They also applied the corporate tax rate in the parent company’s home country to that net earnings figure.They also allocated a percentage of those earnings to the brand based on the role brands play in each industry.

However, valuing the brands was to determine revenue and earnings before interest and taxes for each one.averaged earnings before interest and taxes (EBIT) over the past three years and subtracted from earnings a charge of 8% of the brand’s capital employed, figuring a generic brand should be able to earn at least 8% on this capital.

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