World’s Most valuable company: Apple first, of course

8 years ago - Published in Finance, Fundamental Analysis

Tech giant Apple has been named the most valuable brand in the world for a seventh consecutive year, worth $170 billion. Its brand value is up 10% over last year and represents 21% of the company’s recent market value of $806 billion, a 10 per cent increase on the figure for 2016. Google  ranked second place, whose brand value has risen $19.3bn from last year to just under $102bn, according to Forbes. It's the second straight year Google has placed second to Apple, and it is closing the gap with a 23% gain this year after a 26% jump in 2016. 

Tech peer Microsoft nabbed third spot, with a value of $87bn, followed by Facebook at $73.5bn. Consumer goods giant Coca-Cola rounds out the top five with a value of $56.4bn.

2017’s biggest losers in terms of brand value were IBM, which lost 20 per cent of its value from 2016, HSBC, which fell 18 per cent, Caterpillar and H&M, which both lost 11 per cent, and Coach and Cartier, which slipped 8 per cent.

“Technology brands continue to rank as the most valuable in the world,” said Forbes senior editor Kurt Badenhausen. He said that Apple’s premium brand now produces an average selling price of nearly $700 for its iPhones. That helps the company to generate more than 80 per cent of the whole industry’s smartphone profits.

Forbes’ ranking is based on analysis of more than 200 global brands, taking into account three years of earnings and looking at the role that each brand plays in its respective industry.

The company’s shares have already gained more than 33 per cent this year and almost 50 per cent since the US presidential election in November, chiefly boosted by Donald Trump’s pledges to cut taxes and roll back regulation.

Apple has total cash reserves of about $250bn, the vast majority of which is stashed offshore. A tax holiday, as the US President has indicated, would let the tech giant repatriate that cash without being slammed with a massive levy.

The 100 most valuable brands are worth a cumulative $1.95 trillion, up 6% over last year. They range from Apple on top at $170 billion to German financial services firm Allianz with a brand worth $6.8 billion by Forbes’ count.