In this piece, we will take a look at the 5 most valuable European companies heading into 2024. For more companies, head on over to the 25 most valuable European companies heading into 2024.
5. Hermès
Market value as at 31st October 2023 (in $ billions): 195.0
Hermès is one of the most well-known brands in the world, and has had a strong performance in 2023, with its share price increasing by nearly 20%. Currently, 82% of Hermès’ ownership is among institutional investors, making it a favorite stock for the big guns.
4. L’Oréal
Market value as at 31st October 2023 (in $ billions): 224.9
L’Oréal is the biggest cosmetics company in the world, and after China’s disappointing economic performance post-Covid, L’Oréal is focusing on India and South East Asia to drive growth and maintain its position among the biggest European companies heading into 2024.
3. ASML Holding N.V. (NYSE:ASML)
Market value as at 31st October 2023 (in $ billions): 236.7
ASML Holding N.V. (NYSE:ASML) is the most valuable tech company in Europe and one of the largest semiconductor companies in the world.
Artisan Developing World Fund made the following comment about ASML Holding N.V. (NASDAQ:ASML) in its Q3 2023 investor letter:
“Bottom contributors to performance for the quarter included Dutch semiconductor equipment producer ASML Holding N.V. (NASDAQ:ASML). ASML declined due to ongoing weakness in leading-edge extreme ultraviolet (EUV) orders, uncertainty around sustainability of lagging-edge deep ultraviolet (DUV) demand, and media reports of further potential restrictions on exports to Chinese customers.”
2. LVMH Moët Hennessy
Market value as at 31st October 2023 (in $ billions): 387.4
It’s been Europe’s most valuable country for a while, but was finally dethroned in 2023. LVMH’s share price fell to its lowest value in 2023 a few weeks ago as the luxury boom has given way, which in turn has led to a slowdown in the company’s growth rate, dragging down Europe’s luxury sector.
1. Novo Nordisk A/S (NYSE:NVO)
Market value as at 31st October 2023 (in $ billions): 431.6
Topping the list of the 25 most valuable European companies heading into 2024 is Novo Nordisk A/S (NYSE:NVO), one of the most valuable pharmaceutical companies in the world. Novo Nordisk A/S (NYSE:NVO) recently dethroned LVMH to become Europe’s reigning country after the unmitigated success of Wegovy, a weigh-loss drug with spectacular results.
Novo Nordisk A/S (NYSE:NVO) mentioned Wegovy’s growth in its Q2 2023 earning calls, stating “Obesity care sales increased by 157%, mainly driven by the U.S. due to a strong Wegovy uptake and continued demand for Saxenda. The global branded obesity market expansion continues with a global volume growth of around 76%. In international operations, obesity care sales are driven by a strong Saxenda performance and the Wegovy launches in Denmark and Norway. We anticipate a continuation of the gradual rollout of Wegovy in international operations, which now includes Wegovy launches in Denmark, Norway, and Germany. In the U.S. alone, sales of Wegovy grew by 344%, and we continue to see an overwhelming demand for Wegovy. While supply capacity is gradually being expanded, the supply of the lower dose strengths will remain restricted to safeguard continuity of care. As mentioned by Doug, the supply of the lower Wegovy dose strengths in the U.S. will remain restricted to safeguard continuity of care while supply capacity is gradually being expanded. We expect that operating profit growth will be between 31% and 37% at constant exchange rates. This primarily reflects the sales growth outlook and continued investments in current and future growth drivers within R&D and commercial.”
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