Largest Philippine companies, by Market Capitalization

Which publicly traded company is the largest in the Philippines in terms of market capitalization?

If you answered PLDT (TEL) — don’t be surprised, but you’re wrong.

PLDT is not the largest company in the country right now, well, at least not as of the end of June 2014. Before we reveal the answer to you, let’s first discuss: what is market capitalization?

Market capitalization explained

Market capitalization or market cap is simply the market value of a company’s total outstanding shares. Companies with large market caps are said to be “most valuable” in the exchange since they are the ones with the highest market values.

To determine the market cap, take the current stock price of a company and multiply it with the total number of shares outstanding and you get the total “market value” of the firm.

The actual market cap formula is:

  • Current price of a stock x Number of outstanding shares of the company

For example, if Company A’s stock is currently trading at P5.00 per share and the company’s total shares outstanding is 1 million, then the company’s market capitalization or market value is P5 million.

Most newbie investors think that share price alone determines the “value” of a company. This is not entirely accurate.

Let’s say another company, Company B, has a stock trading at a relatively higher price, for example, P30.00 per share. If Company B has issued 100,000 shares only, its market value or market capitalization is only P3 million.

Company B’s stock price may be higher than Company A’s but Company A actually has a bigger market value compared to Company B.

Most Expensive PSE stocks

In our previous article on Most Expensive Stocks in the PSE, we reiterated that price per se does not and cannot say if a firm is a blue chip company or if it is well-managed. High price is also not tantamount to the “value” of the company. Several factors could have contributed to a high or low stock price — including stock splits, stock dividends, low or high initial IPO price, etc.

Which brings us to our point. Even if PLDT is the most expensive stock to buy in the PSE, one other company actually has a bigger market cap than PLDT — even if its share price is merely one-third of PLDT’s stock price.

So which company is larger than PLDT in terms of market value?

It is, in fact, SM Investments Corp. (SM), currently with P649.758 billion market value. Although SM currently trades at just a third of TEL’s price, there are almost four times total outstanding shares of SM versus PLDT. Which is why SM’s market cap is higher than PLDT’s market capitalization of P645.575 billion as of the end of June 2014.

Here is a list of the country’s biggest companies, ranked by market value using their stock closing prices as of June 30, 2014.

Top 30 Largest Companies in the Philippines, by Full Market Capitalization

RankCompanyStock CodeClosing Price (June 30, 2014)Outstanding SharesMarket Capitalization (in billion PHP)% Weight in the PSE
1SM INVESTMENTS CORPORATIONSM816.00796,272,268649.758 billion5.92%
3SM PRIME HOLDINGS, INC.SMPH15.8627,819,137,294441.212 billion4.02%
4AYALA LAND, INC.ALI30.5014,185,891,152432.670 billion3.94%
5AYALA CORPORATIONAC647.50600,351,221388.727 billion3.54%
6JG SUMMIT HOLDINGS, INC.JGS51.257,017,191,657359.631 billion3.28%
7BANK OF THE PHILIPPINE ISLANDSBPI91.003,929,090,393357.547 billion3.26%
8UNIVERSAL ROBINA CORPORATIONURC154.302,181,501,933336.606 billion3.07%
9BDO UNIBANK, INC.BDO93.503,580,875,328334.812 billion3.05%
10ABOITIZ EQUITY VENTURES, INC.AEV56.005,521,871,821309.225 billion2.82%
11ALLIANCE GLOBAL GROUP, INC.AGI29.1010,269,827,979298.852 billion2.72%
12MANILA ELECTRIC COMPANYMER255.801,127,098,705288.312 billion2.63%
13ABOITIZ POWER CORP.AP36.657,358,604,307269.693 billion2.46%
14METROPOLITAN BANK & TRUST COMPANYMBT87.402,744,801,066239.896 billion2.19%
15INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.ICT111.002,036,062,860226.003 billion2.06%
16GLOBE TELECOM, INC.GLO1600.00132,680,427212.289 billion1.93%
17SAN MIGUEL CORPORATIONSMC83.002,378,034,220197.377 billion1.80%
18DMCI HOLDINGS, INC.DMC74.002,655,494,000196.507 billion1.79%
19JOLLIBEE FOODS CORPORATIONJFC176.001,055,036,007185.686 billion1.69%
20EMPERADOR INC.EMP11.8215,000,000,000177.300 billion1.62%
21LT GROUP, INC.LTG14.7610,821,388,889159.724 billion1.46%
22GT CAPITAL HOLDINGS, INC.GTCAP870.00174,300,000151.641 billion1.38%
23MEGAWORLD CORPORATIONMEG4.5032,029,154,905144.131 billion1.31%
24TRAVELLERS INTERNATIONAL HOTEL GROUP, INC.RWM8.9115,755,874,850140.385 billion1.28%
25PAL HOLDINGS, INC.PAL5.4024,836,512,096134.117 billion1.22%
26SEMIRARA MINING CORPORATIONSCC366.40356,250,000130.530 billion1.19%
27METRO PACIFIC INVESTMENTS CORPORATIONMPI5.0126,040,960,752130.465 billion1.19%
28PUREGOLD PRICE CLUB, INC.PGOLD43.402,766,406,406120.062 billion1.09%
29PETRON CORPORATIONPCOR12.749,375,104,497119.439 billion1.09%
30ENERGY DEVELOPMENT (EDC) CORPORATIONEDC6.3018,750,000,000118.125 billion1.08%

View here the latest and updated Market Capitalization of Philippine companies:

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