In this article, we will be taking a look at the 30 most valuable UK companies. To skip our detailed analysis, you can go directly to see 10 most valuable UK companies.
The UK is home to a highly developed economy which is one of the largest in Europe and the world. Its economy includes England, Wales, Scotland and Northern Ireland, and is the fifth biggest exporter in the world as well as the fifth largest importer. With a GDP of $3.2 trillion in 2021, the UK has seen its economy grow by 7.4% in 2021 alone, showcasing a strong recovery after the pandemic dramatically impacted its economy. In 2020, when the pandemic caused the GDPs of most companies to contract, the UK was one of the worst affected countries among developed nations, as it saw a relatively higher number of deaths and infections, and its GDP fell by 9.3%, while the outlook doesn’t look very positive either, which is bad news for the 30 most valuable UK companies.
However, even though the UK’s GDP increased significantly in 2021, anyone taking it as a sign that the economy has grown further in 2022 and 2023, and hence, investing in the country is a good option, should consider that due to inflation and interest rates, which we’ll discuss in further detail in a bit, the UK’s economic growth has slowed down significantly in 2022. According to the Office for National Statistics of the UK, the GDP in October 2022 only grew by 0.5% while it fell by 0.6% in September 2022, showing that the economy isn’t as stable as one might hope for.
One of the reasons behind this turbulence is the lack of political stability in a country where this doesn’t really happen. There have already been three UK Prime Ministers in 2022, after Boris Johnson resigned, Liz Truss’s disastrous policies saw her last just fifty days becoming the shortest serving Prime Minister in the UK, and now Rishi Sunak is the Prime Minister. This political instability has led to investors being reluctant to consider the UK as a prospect as political stability is a must for any country to continue growing.
Another issue that the UK is facing is high levels of inflation, which is something most countries in the world are grappling with. However, the UK has been hit particularly hard, with the Consumer Price Index increasing by 9.3% in the twelve months to 2022. Energy prices however have increased much more significantly mainly due to the Russian Ukraine war, which has raised energy prices in many European countries, but the UK has been much more exposes due to numerous reasons. 85% of households in the UK use gas boilers for heating their homes while 40% of the country’s electricity is produced in power stations run on gas, both of which are higher proportions than other European countries. Houses in the country are also quite poorly insulated and so more energy is required for heating purposes. This heavy reliance on gas means that UK households are the worst impacted in Western Europe, according to the International Monetary Fund. Since households are having to pay a lot more in utility bills, this is impacting the purchasing power of consumers and hence, could result in a lower return on investment which can impact investment opportunities.
To control inflation, the Bank of England has kept increasing interest rates in 2022, with nine such increases so far, with the latest one increasing interest rates to 3.5%. This is the highest rate in 14 years, but borrowers have been told that there will likely be further increases in 2023, despite fears that the UK is about to enter a long-drawn recession, if it hasn’t already. Higher interest rates mean higher cost of borrowing which in turn can impact return on investment.
Last month, the Bank of England warned the UK that it was facing its longer recession in history, ever since records began being maintained over a century ago. The economy also contracted by 0.2% in Q3 2022 which seems to confirm that a recession is imminent rather than likely. According to the British Chambers of Commerce, UK GDP growth forecast for 2022 will be 4.2%, -1.3% in 2023 and 0.7% in 2024, which shows that tough times are likely ahead and 2023 will see a recession.
While the immediate outlook of UK’s future seems slightly uncertain, it is still home to some of the largest and most influential companies in the world. Several of the 30 most valuable UK companies are known by most people, especially the consumer facing companies. Combined, these companies have a value of almost $2 trillion. We have assessed the largest UK companies by determining their market cap from Yahoo Finance and converting to USD where necessary, So, without further ado, let’s take a look at the giants of one of the most important global economies, starting with number 30:
30. CNH Industrial N.V. (NYSE:CNHI)
Total market cap of the company (in billions): $21.95
CNH Industrial N.V. (NYSE:CNHI) might be headquartered in the UK, but is majority controlled by the Agnelli family, who are more well-known for owning Juventus F.C. CNH Industrial N.V. (NYSE:CNHI) is engaged in the production of heavy equipment and agricultural machinery.
29. SSE
Total market cap of the company (in billions): $22.27
SSE is one of the few companies in our list of the most valuable UK companies to have its headquarters in Scotland.
28. Imperial Brands
Total market cap of the company (in billions): $23.56
The second largest tobacco company in the UK, Imperial Brands produces more than 320 billion cigarettes every year, with some of its biggest brands including Davidoff and Montecristo.
27. Coca-Cola Europacific Partners PLC (NASDAQ:CCEP)
Total market cap of the company (in billions): $25.22
Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) was formed through the merger of three bottling companies. Recently, Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) announced a $43.7 million state-of-the-art can line.
26. Ashtead Group
Total market cap of the company (in billions): $25.29
Ashtead is the largest equipment rental company, earning over $5 billion in revenue in 2021.
25. Ferguson plc (NYSE:FERG)
Total market cap of the company (in billions): $26.21
The most valuable plumbing and heating company in the UK, Ferguson plc’s (NYSE:FERG) primary operations are in the U.S., where it operates under the name of Ferguson Enterprises. Currently, Ferguson plc (NYSE:FERG) has around 21,000 employees.
24. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Total market cap of the company (in billions): $26.48
Willis Towers Watson Public Limited Company (NASDAQ:WTW) is an insurance advisor. Willis Towers Watson Public Limited Company (NASDAQ:WTW) is one of the most recent companies in our list, having been established only 6 years ago.
23. LyondellBasell Industries N.V. (NYSE:LYB)
Total market cap of the company (in billions): $27.18
LyondellBasell Industries N.V. (NYSE:LYB) is a chemical company which is one of the biggest chemical producers in the U.S. Recently, LyondellBasell Industries N.V. (NYSE:LYB) announced an increase in its greenhouse gases emissions reduction target, signifying to investors that it is taking ESG very seriously.
22. Vodafone Group Public Limited Company (NYSE:VOD)
Total market cap of the company (in billions): $27.74
Vodafone Group Public Limited Company (NYSE:VOD) is the largest telecommunications company in the UK, and also among the most valuable UK companies. Currently, Vodafone Group Public Limited Company (NYSE:VOD) operates in over 22 countries while providing services in over 150 countries.
21. Barclays PLC (NYSE:BCS)
Total market cap of the company (in billions): $31
Barclays PLC (NYSE:BCS) is a British bank which had revenues of nearly $25 billion in 2021. Barclays PLC (NYSE:BCS) employs more than 83,000 people.
20. NatWest Group plc (NYSE:NWG)
Total market cap of the company (in billions): $31.58
There are various banks among the most valuable UK companies, including NatWest Group plc (NYSE:NWG). Prior to the 2008 recession, NatWest Group plc (NYSE:NWG) was among the largest banks in Europe but its share price collapsed significantly in 2008.
19. BAE Systems
Total market cap of the company (in billions): $32.2
BAE Systems is one of the largest aerospace and defense companies in the world and is one of the biggest suppliers to the US Department of Defense.
18. Prudential plc (NYSE:PUK)
Total market cap of the company (in billions): $37.4
Prudential plc (NYSE:PUK) is one of the largest insurance companies in the UK. Prudential plc (NYSE:PUK) is also considered among the oldest insurance companies in the UK and recorded revenues of $26.5 billion in 2021.
17. Lloyds Banking Group plc (NYSE:LYG)
Total market cap of the company (in billions): $37.76
Lloyds Banking Group plc (NYSE:LYG) is one of the largest financial institutions in Europe. Some of Lloyds Banking Group plc’s (NYSE:LYG) biggest brands include Bank of Scotland, Halifax and Scottish Widows among others.
16. Compass Group
Total market cap of the company (in billions): $40.70
Compass Group is a foodservice company which is the largest such company in the world and has nearly half a million employees.
15. National Grid plc (NYSE:NGG)
Total market cap of the company (in billions): $44.29
National Grid plc (NYSE:NGG) is the largest electricity and gas utility company in the UK. While it primarily operates in the UK, National Grid plc (NYSE:NGG) also has some operates in some parts of the U.S.
14. London Stock Exchange Group
Total market cap of the company (in billions): $47.48
The London Stock Exchange Group is of course the company which owns the London Stock Exchange.
13. Reckitt Benckiser Group
Total market cap of the company (in billions): $50.03
Reckitt is one of the most well-known consumer goods companies in the world, with some of its biggest products including Strepsils, Mortein, Gaviscon, Dettol, Veet and Disprin among others.
12. Anglo American
Total market cap of the company (in billions): $52.88
Anglo American is the biggest platinum producer in the world and operates in 6 continents, which has enabled it to be counted among the most valuable UK companies.
11. RELX PLC (NYSE:RELX)
Total market cap of the company (in billions): $53.29
RELX PLC (NYSE:RELX) is an information and analytics industry. Currently, RELX PLC (NYSE:RELX) has operations in more than 40 countries and has its shares listed in several stock exchanges.
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Disclosure: None. 30 Most Valuable UK Companies is originally published at Insider Monkey.
