General Electric is the world's most valuable public company in the December 2005 BusinessWeek Magazine's ranking of some of the top 1,200 companies in the world, the Global 1200, based on the Standard & Poors Global 1200 Index. Some big companies such as Google are not part of this index.

The magazine says: Pity the shareholders of Irish drugmaker Elan Corp., for example. The company plunged 462 places on the list, to 1,009, earning the dubious distinction of being the biggest loser. Elan shares plummeted 68% on one dark day in February after it pulled multiple sclerosis treatment Tysabri, a drug implicated in three deaths, from the U.S. market. That was only the latest setback for Elan, once the biggest company on the Irish stock exchange until an inquiry into its accounting practices brought the firm close to bankruptcy in 2002.

BusinessWeek says that for every harrowing descent, there is an exhilarating ascent. This year's top gainer was Australian real-estate developer Westfield Group, which rose 458 places, to No. 285. Westfield has become a favorite of fund managers with its fast expanding network of shopping centers extending from Brisbane, Australia, to San Francisco. Close behind: France's Alstom, which rose 419 places, to 751. Alstom, which got a $3.8 billion French government bailout in 2003 after it nearly collapsed, returned to profitability this year as it sold off assets, renegotiated debt, and took in more orders for power plants and railway equipment.

The magazine says that the Global 1200 amply confirms the idea that free-market capitalism is a constant process of creative destruction, with pain and gain -- but, in the end, a more prosperous world. In 2005, the total stock market value of the BusinessWeek Global 1200, a ranking of listed corporations in 29 countries compiled by Standard & Poor's rose 10%, to just under $24 trillion. Since this is a ranking of only companies in the S&P index, not all large companies are included. Stocks are selected to reflect their market, based on criteria such as size, sector balance, liquidity, and financial viability. The companies ranked by S&P should see another healthy gain in 2006. Credit Suisse First Boston, for example, forecasts a 7% return in world equity markets in 2006. Even after a strong 2005, stocks will remain cheap as growth accelerates modestly and inflation remains tame.

The BusinessWeek Global 1200 (pdf format)

The Finfacts Global Companies Page