Top 10 FTSE stocks by market cap

Summary 

• Market capitalisation is determined by multiplying the company’s outstanding shares by its current share price.

• Market cap is a very important parameter while grouping similar kinds of stocks and shares.

• AstraZeneca, Unilever, Diageo, Glaxosmithkline and British American Tobacco are among the top market capitalisation shares on the LSE.

Market capitalisation, commonly called market cap amongst investing community, is the value of the publicly-traded company based on demand-supply for its shares and overall public opinion on the company’s future outlook and net worth. It is commonly used to assess the value of a stock before investing.

Market cap is determined by multiplying the company’s outstanding shares by its current share price; for example, a company with 20 million shares trading in the market at GBX 1000 will have a market cap of £200 million. Market cap is a very crucial parameter used to group similar kinds of stocks and shares. For example, FTSE 100, a benchmark index of the United Kingdom, has large market cap companies, while FTSE250 has companies with mid-level market cap.

Let us take a look at the top 10 FTSE listed companies by market capitalisation:

AstraZeneca Plc (LON: AZN)

The biopharmaceutical company focuses on the research and development of prescribed medicine for the treatment of various diseases. Its innovative medicines are used by millions of patients worldwide.

In its half-yearly results for the period ended 30 June 2021, the company reported revenue growth of 23% at £11135.7 million. The sales in the Emerging Markets rose by 26% to £3906.53 million, benefitting from sales of the COVID-19 vaccine of £325.60 million. Total revenue increased by 16% to £3459.2 million in the US, while in Europe by 33% to £2333.6 million.

AstraZeneca Plc shares are trading since June 1993 on the London Stock Exchange, and the stock has steadily gained the market cap. The company’s market cap stands at £128.2 billion as of 30 July 2021.

Unilever Plc (LON: ULVR)

The company is a leading supplier of daily consumer care products worldwide. As per the company, it has over 400 brands found in homes, and its products are used by 2.5 billion people every day.   

The company saw a sales growth of 5.4% and a turnover of £21.96 billion during the first half of 2021. However, the basic earnings per share went down by 2.0% at £1.13 because of the negative currency impact.

The company’s stock has been trading on the London Stock Exchange for a long time, and because of its constant growth over the years with world-class products and high consumer recalls, the company’s market cap has been moving up steadily. Unilever Plc current market cap is £106.89 billion as of 30 July 2021.

Diageo Plc (LON: DGE)

The company is one of the largest alcohol beverage companies in the world. It operates in more than 180 countries and has around 140 manufacturing sites globally.

Diageo Plc reported net sales of £12,733 million, a 16% rise in organic growth for the year ended 30 June 2021. Volumes were also up by 11%, reflecting high consumer demand for its products and reload of stock levels by distributors and retailers. The operating profits increased by 74.6% to £3654 million due to a reduction in exceptional operating items.

Diageo Plc is one of the oldest companies trading on the exchange. As of 30 July 2021, the company’s market cap stood at £82.7 billion.

HSBC Holdings Plc (LON: HSBV)

HSBC Holdings is one of the largest banking and financial service providers globally. The company provides personal and commercial banking and wealth management services across 64 countries and serves more than 40 million customers.

HSBC Holdings reported a 5% drop in revenue at £11050.8 million in the first quarter of this year because of lower interest rate scenarios across all markets globally. Still, the lender reported an 82% rise in the profit after tax at £3887.29 million. Bank’s UK business reported pre-tax profits of over £850 million in the quarter.

HSBC Holdings has been listed since April 1991 and has a market cap of £81.9 billion as of 30 July 2021.

Rio Tinto Plc (LON: RIO)

Multinational exploration and mining company is the second-largest metal and mining company globally. The company produce copper, gold, uranium, and diamonds through its mining activity.

The company generated £11625.28 million from operating activities during the first six months of 2021. The revenue was up by 143% compared to the same period of 2020, mainly due to higher commodity prices of aluminium, copper, and iron ore which has helped the company to strengthen its free cash flow and balance sheet.

In recent times, Rio Tinto Plc has given a good return to its shareholders because of the global rise in commodity prices and higher demand. Also, the company reported record production levels. The company’s market cap stands at £78.4 billion as of 30 July 2021.

Glaxosmithkline Plc (LON: GSK)

British multinational pharmaceutical company is the sixth-largest pharmaceutical company globally. It researches and develops prescribed medicines as well as over the counter medicines.

The company delivered strong growth in the second quarter of this year. The total revenue was up by 6% at £8092 million during the period. Also, the company declared a dividend of 19p per share for its shareholders during the quarter.

GSK Plc’s current market cap stands at £70.7 billion as of 30 July 2021.

British American Tobacco Plc (LON: BATS)

The company manufacture and sells cigarettes and tobacco-related products worldwide. The company products are sold in over 180 countries, and it is one of the largest tobacco companies in terms of net sales.

The company’s adjusted revenue was up by 8.1% at £12,175 million led by the significant growth in the revenue from new product categories (Vapour, THP, and Modern Oral) and partial recovery from prior year Covid-19 impacts, while its profit from operations was at £5235 million up by 5.4%.

The company’s stock has a dual listing on the London Stock Exchange (LSE) and Johannesburg Stock Exchange. The shares listed on LSE has a market cap of £62.4 billion as of 30 July 2021.

BP Plc (LON: BP.)

The company operates in the oil and gas business and has operations in over 80 countries. The company is active in every oil and gas industry segment from exploration to refining and distribution of fuel through its network of over 18700 service stations worldwide.

The company’s quarter on quarter profit increased to £3340.5 million, compared to £972 million in the fourth quarter of 2020; hence the company had announced dividends of 3.7118p per share, which was paid on 18 June 2021. Also, BP Plc has reduced its net debt to USD 33.3 billion at the end of the first quarter.

With its worldwide business operation, BP Plc has generated higher revenues year-on-year and has constantly been gaining market cap. The company’s market cap stands at £59.8 billion as of 30 July 2021.

Royal Dutch Shell Plc (LON: RDSA)

The company’s stock has a dual listing on the London Stock Exchange and Euronext Amsterdam. It has its self-owned service stations for fuel distribution and also owns oil refineries worldwide.

The company has started its share buyback program on 29 July. The company plans to buy back 780 million shares. The sole intention of the share buyback program is to reduce the issued share capital of the company. Royal Dutch Plc has also declared a dividend of USD 0.24 per share for its shareholder after it reported a 71% rise in the revenue at £3965.6 million during the second quarter of this year.

Royal Dutch Shell Plc has a market cap of £59.8 billion as of 30 July 2021.

BHP Group Plc (LON: BHP)

The company operates in the metal and mining business. It is a leading producer of copper, iron ore, petroleum products and operates its mining activity in over 15 countries.

BHP Group Plc, through its wholly-owned subsidiary, BHP Western Mining Resources International Pty Ltd, has made an all-cash offer to acquire all of the issued and outstanding common shares of a Canadian mining company, Noront, for C$0.55 per share. Noront focus on the development of high-grade nickel, copper, and platinum.

BHP Group plc has a market cap of £50.05 billion as of 30 July 2021.