Markets
Ranked: The Most Valuable Brands in the World
Ranking The World’s Most Valuable Brands
Due to its intangible nature, the power of a brand can be difficult to translate to a balance sheet. That said, a brand that truly connects with consumers and stands the test of time can deliver immense financial value.
Today’s graphic pulls data from the 2020 edition of Brand Finance’s annual Global 500 report, which ranks the world’s top brands by value using a multi-dimensional formula.
By quantifying the true value of a brand, investors and key decision makers can identify value that extends beyond quarterly earnings reports.
How much are brands really worth?
A Closer Look at the Leaderboard
With 18% growth in the last year resulting in an eye-watering brand value of $220 billion, Amazon is a clear winner as the world’s most valuable brand—towering over Google and Apple’s brand valuations. As the largest online marketplace on the planet, Amazon relies on innovative technologies and investments in fast-growing sectors, such as healthcare, to create a diverse retail ecosystem.
Although tech companies command five of the top 10 spots in the ranking, brands from more traditional industries are hot on their tails.
Here are the top 100 most valuable brands according to the report:
Ranking | Brand | 2020 Brand Value | YoY % Change | Country | Sector |
---|---|---|---|---|---|
#1 | Amazon | $220B | 17.5% | United States | Retail |
#2 | $160B | 11.9% | United States | Tech | |
#3 | Apple | $140B | -8.5% | United States | Tech |
#4 | Microsoft | $117B | -2.1% | United States | Tech |
#5 | Samsung | $94B | 3.5% | South Korea | Tech |
#6 | ICBC | $80B | 1.2% | China | Banking |
#7 | $79B | -4.1% | United States | Media | |
#8 | Walmart | $77B | 14.2% | United States | Retail |
#9 | Ping An | $69B | 19.8% | China | Insurance |
#10 | Huawei | $65B | 4.5% | China | Tech |
#11 | Mercedes-Benz | $65B | 7.8% | Germany | Automobiles |
#12 | Verizon | $63B | -10.5% | United States | Telecoms |
#13 | China Construction Bank | $62B | -10.2% | China | Banking |
#14 | AT&T | $59B | -32% | United States | Telecoms |
#15 | Toyota | $58B | 11.1% | Japan | Automobiles |
#16 | State Grid | $57B | 11.1% | China | Utilities |
#17 | Disney | $56B | 22.7% | United States | Media |
#18 | Agricultural Bank of China | $55B | -0.7% | China | Banking |
#19 | $54B | 6.8% | China | Media | |
#20 | Bank of China | $51B | -0.7% | China | Banking |
#21 | The Home Depot | $50B | 7.3% | United States | Retail |
#22 | China Mobile | $49B | -11.9% | China | Telecoms |
#23 | Shell | $47B | 12.4% | Netherlands | Oil & Gas |
#24 | Saudi Aramco | $47B | N/A | Saudi Arabia | Oil & Gas |
#25 | Volkswagen | $45B | 7.6% | Germany | Automobiles |
#26 | YouTube | $44B | 17.5% | United States | Media |
#27 | Tencent QQ | $44B | -11.3% | China | Media |
#28 | Starbucks | $41B | 4.5% | United States | Restaurants |
#29 | Wells Fargo | $41B | 2.3% | United States | Banking |
#30 | BMW | $40B | 0.0% | Germany | Automobiles |
#31 | Deutsche Telekom | $40B | -13.6% | Germany | Telecoms |
#32 | Moutai | $39B | 29.1% | Germany | Spirits |
#33 | PetroChina | $38B | 3.3% | China | Oil & Gas |
#34 | Coca-Cola | $38B | 4.8% | United States | Soft Drinks |
#35 | Mitsubishi Group | $38B | 42.8% | Japan | Automobiles |
#36 | McDonald’s | $37B | 18.9% | United States | Restaurants |
#37 | Taobao | $37B | -20.7 | China | Retail |
#38 | NTT Group | $36B | -12.8% | Japan | Telecoms |
#39 | Bank of America | $35B | -3.6% | United States | Banking |
#40 | Nike | $35B | 7.3% | United States | Apparel |
#41 | Porsche | $33B | 15.6% | Germany | Automobiles |
#42 | Sinopec | $33B | 14.7% | China | Oil & Gas |
#43 | IBM | $33B | 1.5% | United States | Tech |
#44 | CITI | $33B | -9% | United States | Banking |
#45 | Honda | $33B | 28.6% | Japan | Automobiles |
#46 | Marlboro | $33B | -2.7% | United States | Tobacco |
#47 | Deloitte | $32B | 9.6% | United States | Commercial Services |
#48 | Chase | $31B | -13.8% | United States | Banking |
#49 | Tmall | $31B | -15.9% | China | Retail |
#50 | UPS | $29B | 0.6% | United States | Logistics |
#51 | American Express | $29B | 6.2% | United States | Commercial Services |
#52 | Xfinity | $29B | 6.4% | United States | Telecoms |
#53 | United Healthcare | $28B | -7.4% | United States | Healthcare |
#54 | Sumitomo Group | $28B | 4.5% | Japan | Mining, Iron & Steel |
#55 | Intel | $27B | -5.5% | United States | Tech |
#56 | VISA | $27B | -3% | United States | Commercial Services |
#57 | $27B | 58% | United States | Media | |
#58 | China Life | $25B | -4.4% | China | Insurance |
#59 | Accenture | $25B | -3.8% | United States | IT Services |
#60 | Allianz | $25B | 7.5% | Germany | Insurance |
#61 | CSCEC | $25B | -3.3% | China | Engineering & Construction |
#62 | PWC | $25B | -0.3% | United States | Commercial Services |
#63 | Lowe’s | $25B | 3.4% | United States | Retail |
#64 | Mitsui | $24B | 15.8% | Japan | Mining, Iron & Steel |
#65 | General Electric | $24B | -14.4% | United States | Engineering & Construction |
#66 | EY | $24B | 2.1% | United Kingdom | Commercial Services |
#67 | Oracle | $24B | -6.7% | United States | Tech |
#68 | Cisco | $24B | 7.1% | United States | Tech |
#69 | BP | $23B | 2.6% | United Kingdom | Oil & Gas |
#70 | CVS | $23B | 9.1% | United Kingdom | Retail |
#71 | Total | $23B | 8.1% | France | Oil & Gas |
#72 | FedEx | $23B | -5.1% | United States | Logistics |
#73 | Netflix | $23B | 8.4% | United States | Media |
#74 | China Merchants Bank | $23B | 1.8% | China | Banking |
#75 | JP Morgan | $23B | 15.3% | United States | Banking |
#76 | Boeing | $23B | -29% | United States | Aerospace & Defence |
#77 | Costco | $23B | 32.1% | United States | Retail |
#78 | SK Group | $22B | -17.5% | South Korea | Telecoms |
#79 | Wuliangye | $21B | 30.1% | China | Spirits |
#80 | Evergrande | $21B | 0.5% | China | Real Estate |
#81 | Nestle | $21B | 3.4% | Switzerland | Food |
#82 | Hyundai Group | $21B | -2.8% | South Korea | Automobiles |
#83 | China Telecom | $21B | -2.8% | China | Telecoms |
#84 | Siemens | $21B | -7.2% | Germany | Engineering & Construction |
#85 | TATA Group | $21B | 2.3% | India | Engineering & Construction |
#86 | Mastercard | $21B | 8.4% | United States | Commercial Services |
#87 | Bosch | $20B | -14.6% | Germany | Engineering & Construction |
#88 | IKEA | $19B | -9.4% | Sweden | Retail |
#89 | HSBC | $19B | -3.6% | United Kingdom | Banking |
#90 | Spectrum | $19B | 25% | United States | Telecoms |
#91 | Vodafone | $19B | -10.3% | United Kingdom | Telecoms |
#92 | Pepsi | $19B | 2.2% | United States | Soft Drinks |
#93 | Alibaba | $19B | 28.8% | China | Retail |
#94 | Ford | $18B | -1.4% | United States | Automobiles |
#95 | AIA | $18B | 17.3% | China | Insurance |
#96 | Orange | $18B | -13.7% | France | Telecoms |
#97 | Nissan | $18B | -4.5% | Japan | Automobiles |
#98 | Chevron | $18B | 4.7% | United States | Oil & Gas |
#99 | GUCCI | $18B | 20.2% | Italy | Apparel |
#100 | Dell Technologies | $18B | -22.9% | United States | Tech |
American retail giant Walmart enters 2020’s top 10 ranking with an impressive brand value increase of 14% to $77.5 billion. The retailer’s recent success could be partially attributed to its growing strategic partnership with Microsoft—which currently sits in sixth place. By tapping into Microsoft’s cloud services, Walmart can now provide a digital first retail experience for its customers.
Another brand that has experienced remarkable growth is China’s leading insurance company, Ping An. With 19.8% growth, resulting in a brand value of $69 billion, the financial conglomerate’s aggressive focus on fintech R&D has garnered the company 200 million retail customers and 500 million internet users—making it one of the largest financial services companies in the world.
While the majority of the world’s most valuable brands hail from the U.S. or China, which brands lead by region?
Most Valuable Brands by Region
Not surprisingly, Amazon leads as the most valuable B2C brand across the Americas, with the exception of Latin America. Beer brand Corona, was crowned as the leader in this region, boasting a brand value of $8.1 billion.
In Europe, German companies outperformed other countries, with automotive brand Mercedes-Benz holding the title for the most valuable B2C brand for that continent—despite China being its biggest market.
On the other side of the world, Samsung reigns as Asia’s most valuable B2C brand. The company owns 54% of the nascent 5G market globally, having shipped 6.7 million 5G phones in the last year alone.
A Brand Eat Brand World
Whether brands are regional or global leaders, they still face the threat of being knocked of their perch by brands experiencing significant growth.
Climbing to the Top
With an increase of 65% to $12.4 billion, Tesla is officially the fastest-growing brand in the world. Despite concerns over not being able to keep up with demand, the electric car company is expected to exceed 500,000 vehicle deliveries in 2020. Having recently posted over $7 billion of revenue in the fourth quarter of 2019, the success of Tesla’s innovative models is sure to rattle the automotive brands in the ranking.
However, not everything comes down to innovation. European retailers Lidl and Aldi have seen growth of 40% and 37% respectively, and are only getting started.
After disrupting Europe’s entire supermarket industry by offering quality products at significantly lower prices, the chains now have their sights set on the U.S. market, with Aldi expected to surpass Kroger in sales.
Despite the unprecedented disruption caused by e-commerce, the popular assertion that entering digital operations brings instant success while bricks and mortar stores are doomed for extinction is being proved wrong
—David Haigh, CEO Brand Finance
In contrast, there are also well established brands that have struggled to retain brand value.
Racing to the Bottom
Chinese search engine Baidu—also known as the Google of China—recorded the largest drop in brand value, decreasing by 54% to $8.9 billion. The brand has struggled with a poor reputation and intensifying market competition. As a result, the brand’s revenues and subsequently its brand value were heavily impacted.
Boeing is a prime example of the unpredictability of brand value. As a company that once imbued trust and excellent safety standards, the brand’s value has dropped by 29% due to the recent reports of accidents that have tarnished its reputation.
The True Power of Brand
Boeing’s recent hardships reflect the volatile nature of brand value. While 244 brands in the entire ranking have increased their brand value year-over-year, another 212 have taken a hit.
Part of a brand’s purpose is to manage reputation, retain loyal customers, and generate awareness. Given that a brand is the sum of its parts, the ranking proves that an issue with any of these things could trigger a chain reaction, negatively impacting a brand’s bottom line.
So is it worth companies investing in their brand? All signs point to yes, for now.
Markets
Beyond Big Names: The Case for Small- and Mid-Cap Stocks
Small- and mid-cap stocks have historically outperformed large caps. What are the opportunities and risks to consider?
Beyond Big Names: The Case for Small- and Mid-Cap Stocks
Over the last 35 years, small- and mid-cap stocks have outperformed large caps, making them an attractive choice for investors.
According to data from Yahoo Finance, from February 1989 to February 2024, large-cap stocks returned +1,664% versus +2,062% for small caps and +3,176% for mid caps.
This graphic, sponsored by New York Life Investments, explores their return potential along with the risks to consider.
Higher Historical Returns
If you made a $100 investment in baskets of small-, mid-, and large-cap stocks in February 1989, what would each grouping be worth today?
Small Caps | Mid Caps | Large Caps | |
---|---|---|---|
Starting value (February 1989) | $100 | $100 | $100 |
Ending value (February 2024) | $2,162 | $3,276 | $1,764 |
Source: Yahoo Finance (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Mid caps delivered the strongest performance since 1989, generating 86% more than large caps.
This superior historical track record is likely the result of the unique position mid-cap companies find themselves in. Mid-cap firms have generally successfully navigated early stage growth and are typically well-funded relative to small caps. And yet they are more dynamic and nimble than large-cap companies, allowing them to respond quicker to the market cycle.
Small caps also outperformed over this timeframe. They earned 23% more than large caps.
Higher Volatility
However, higher historical returns of small- and mid-cap stocks came with increased risk. They both endured greater volatility than large caps.
Small Caps | Mid Caps | Large Caps | |
---|---|---|---|
Total Volatility | 18.9% | 17.4% | 14.8% |
Source: Yahoo Finance (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Small-cap companies are typically earlier in their life cycle and tend to have thinner financial cushions to withstand periods of loss relative to large caps. As a result, they are usually the most volatile group followed by mid caps. Large-cap companies, as more mature and established players, exhibit the most stability in their stock prices.
Investing in small caps and mid caps requires a higher risk tolerance to withstand their price swings. For investors with longer time horizons who are capable of enduring higher risk, current market pricing strengthens the case for stocks of smaller companies.
Attractive Valuations
Large-cap stocks have historically high valuations, with their forward price-to-earnings ratio (P/E ratio) trading above their 10-year average, according to analysis conducted by FactSet.
Conversely, the forward P/E ratios of small- and mid-cap stocks seem to be presenting a compelling entry point.
Small Caps/Large Caps | Mid Caps/Large Caps | |
---|---|---|
Relative Forward P/E Ratios | 0.71 | 0.75 |
Discount | 29% | 25% |
Source: Yardeni Research (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Looking at both groups’ relative forward P/E ratios (small-cap P/E ratio divided by large-cap P/E ratio, and mid-cap P/E ratio divided by large-cap P/E ratio), small and mid caps are trading at their steepest discounts versus large caps since the early 2000s.
Discovering Small- and Mid-Cap Stocks
Growth-oriented investors looking to add equity exposure could consider incorporating small and mid caps into their portfolios.
With superior historical returns and relatively attractive valuations, small- and mid-cap stocks present a compelling opportunity for investors capable of tolerating greater volatility.
Explore more insights from New York Life Investments
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