01.02.13
In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Pfizer Inc has taken over the No. 12 spot from Procter & Gamble Co., according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company’s stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist.
But comparing market capitalization (factoring in those share counts) creates a true “apples-to-apples” comparison of the value of two stocks. In the case of Pfizer Inc, the market cap is now $190.76 billion, versus Procter & Gamble Co.at $189.73 billion.
But comparing market capitalization (factoring in those share counts) creates a true “apples-to-apples” comparison of the value of two stocks. In the case of Pfizer Inc, the market cap is now $190.76 billion, versus Procter & Gamble Co.at $189.73 billion.