A recent analysis has identified 15 European companies with market capitalizations exceeding €100 billion, highlighting their significant influence on the continent’s economy. Leading the list is LVMH, with a capitalization of €312 billion, followed by ASML and SAP, both surpassing €260 billion. Other notable companies include Hermès, L’Oréal, and Spain’s Inditex, which ranks sixth with nearly €170 billion.
These 15 companies represent approximately a quarter of the total value of the Stoxx 600 index, reflecting their substantial weight in the European market. According to a Goldman Sachs report, this group of companies, dubbed the “Granolas,” outperformed the U.S. “Magnificent Seven” in returns during 2022 and 2023, while exhibiting half the volatility. Additionally, they offer a dividend yield of 2.5%, higher than the 0.3% of their U.S. counterparts.
This positive performance has been achieved despite the modest economic expansion of the eurozone, which recorded GDP growth of 0.2% quarterly and 0.3% annually in the second quarter of 2024. This contrast with the U.S. economy underscores the resilience and strength of these large European corporations in the global context.
The concentration of value in these companies raises questions about the structure of the European market and the need for strategies that promote business competitiveness against powers like the United States and China. Passive management and the lack of liquidity in the European stock market are factors that experts believe have contributed to this trend.
In summary, these 15 companies not only lead in terms of market capitalization but also play a crucial role in the European economy, standing out for their stability and ability to generate attractive returns for investors.