Global Top 100 companies - March 2023

Key highlights 2023

First significant YoY decline since 2009 

• Market capitalisation for the Top 100 companies decreased by 11% ($3,845bn) compared to 31 March 2022, the first significant decrease since 2009 (-38%). 
• A strong Q1-23 for equity markets, despite turbulence in the Banking sector, wasn’t sufficient to reverse losses recorded earlier in the year with a fall in investor confidence and the tightening of fiscal policies globally amongst the key factors putting equity valuations under pressure.

Europe the only region with YoY growth

• Despite a volatile macroeconomic backdrop, Europe experienced YoY growth, the only region to do so, with total market capitalisation increasing $341bn (9.5%), moving up to the second spot in the regional list. This was attributable to four new entries and some outstanding YoY performers, including a healthcare company based in Denmark (+ 40%).
• The US saw a 12% ($2,969bn) decline in market capitalisation, though retained its number one spot in the regional list.

Sector dynamic

• Despite a surprising rally in Q1-23 for technology, the sector recorded an 8% YoY decline in the list, the first decline recorded since 2016.
• A poor year for Financials and Consumer Discretionary, accounting for $2,159bn (56%) of the total fall in market capitalisation, driven by exits and performance.
• Companies featuring within the Industrial sector performed well with market capitalisation increasing 45% ($376bn), mainly aided by four new entries into the Top 100.

Country performance

• The top three countries (US, Saudi Arabia and Mainland China) retained their respective positions for their share of market capitalisation, despite their market capitalisation dropping by 12%, 18% and 11%, respectively.
• Germany, France and Denmark had notable growth this year despite challenging macroeconomic conditions. A Germany based Technology Company, saw a 12% increase in market capitalisation this year, one of a few exceptions in the Top 100.

^{Source: Capital IQ with PwC analysis}

Europe outperforms the regions with four new entrants into the Top 100

^{Source: Capital IQ with PwC analysis}

• Europe the only region to grow YoY, aided by the performance in Denmark (+40%), Germany (+18%) and France (+17%).
• The US remains the number one region in the Top 100, despite a $2,969bn reduction in its total market capitalisation, the US retained its 70% share in value of the Top 100. This highlights the fact that challenges were broad based, impacting most key regions and sectors in the period.
• China and its regions market capitalisation decreased by 7%, despite welcoming one new entrant into the Top 100. The Finance sector accounts for more than half of overall market capitalisation drop in the region.
• The Rest of the World faced a challenging year with three exits from the Top 100 and the market capitalisation of an Energy company, based in Saudi Arabia, falling by $404bn.

Key sectors all decline in the year to 31 March 2023, though Technology continues the trend of increasing as a % of the Top 100

^{Source: Capital IQ with PwC analysis}

• The Technology sector faces its first decline in market capitalisation since 2016, falling 8% on 2022. Despite this, all 18 tech companies from 2022 maintain their position as a Top 100 Company.
  

• Financials had performed well relative to the Top 100, benefitting from the rising interest rate environment. However, worries of instability in the US and European banking sectors resulted in share prices falling at some of the world’s largest financial institutions. The aftermath led to one US bank exiting the list after shedding over 30% of its value in Mar-23.

• Energy fell 12%, with varied performance amongst the seven Energy companies. Significant movers were, a Saudi Arabia based Company, who fell 18% ($404bn), whilst a US based company grew 28% ($97bn) in the year.