5 Most Expensive Stocks In The World

Have you ever wondered about the most expensive stock in the world? Is it Apple or Microsoft? No! Though these companies are at the top according to market capitalization, they are not the most expensive stocks.

So, which stock has the highest price? Let's find out.

What is meant by the most expensive stock?

Before finding out the costliest stock in the world, let us understand what it means to be the most expensive stock in the world.

Expensive stocks can be referred to as those stocks, that have an exponentially high price or are expensive compared to their underlying fundamentals. The most expensive stock does not necessarily mean the best stock or the best business in the world. It is the current market price of the stock, along with other factors, making it the costliest.

As the markets are volatile, as the price changes, the most expensive shares also change.

Top 5 Expensive Stocks in the World

Here are the five most expensive stocks in the world -

Explore 5 most expensive stocks in the world

1. Berkshire Hathaway Inc.: Are you amazed to see Warrant Buffet's company at the top of the list of most expensive stock? Yes, this consumer goods conglomerate is the world’s most expensive stock, which has a current market price of US$ 630500. In the past year, the share gained 36.45% and the current market capitalization stands at US$ 906.14 billion. However, even being the most expensive shares, it is offering an EPS of around US$ 66411.99 at present, which is noteworthy. Some of the crucial holdings of the company include GEICO, Dairy Queen, and Fruit of the Loom.
2. NVR Inc.: The second most expensive stock in the world is this US-based homebuilding and construction supplies giant – NVR Inc. The current market price (CMP) of the stock is around US$ 8098.2 with a market capitalization of US$ 25.77 billion. Currently, it is offering an EPS of around US$ 491.52, and the stock has gained 45.59% in the past year.
3. Seaboard Corporation (SEB): The next on this list of costliest stock in the world is SEB, which is a food and tobacco business giant. It has mainly six main business verticals, which are Marine, pork, turkey, sugar and alcohol, power, commodity trading, and milling. The CMP of SEB is around US$ 3302.6 with a market capitalization of US$ 3.23 billion. However, its share performed negatively in the past year, delivering a negative 14.46% return. That said, the EPS stands at US$ 202.21 and a dividend yield of nine, which is impressive.
4. AutoZone: This is the fourth most expensive stock across markets, with a current market price of around US$ 3214.95. This company has a market capitalization of US$ 55.76 billion and in the past year, the share rose 33.09%. AutoZone Inc. is a Tennessee-based business, that supplies different automobile parts and accessories across the USA, Brazil, and Mexico.
5. Chipotle Mexican Grill Inc. (CMG): Finally, the fifth most expensive stock at present is CMG with a current market price of $2913.48. The stock offers a whopping 1-year return of around 77.83% and the current market capitalization is around US$ 79.89 billion. You might be amazed to know that this is a California-based company, which is a chain of restaurants selling food and beverages.

What makes a stock expensive?

So, now you know which stock has the highest price but do you want to know, how these stocks become so expensive?

There are multiple reasons behind stock prices are becoming too expensive. It can be reinvestment of profits into the company, which shoots up the profits, helps the company boom, and increases the share price, as Berkshire Hathaway has been doing for years now. The company never distributed dividends in all these years!

It can be also the strong fundamentals of the company that make it stand out in the industry which makes its stock price go up exponentially.

In addition to the same, growth potential, the demand of the investors also affects the stock prices, which makes the stock price, shoot up.

Conclusion

While the most expensive stock may look lucrative, before buying the same, you need to check whether it is right for your portfolio or not. Often these stocks depict the demand in the industries, or brand value apart from strong fundamentals.

FAQs on 5 most expensive shares

1. Which share has the highest price?

Berkshire Hathaway Inc. has the highest price at present. It is currently around US$ 628390.

2. How is the value of a stock determined?

The demand and supply for the stock primarily determine the stock price in the stock market. However, it is the fundamentals of the company, along with business prospects, and brand value that play the pivotal role behind it.

3. Does it make sense to buy expensive stocks?

If the expensive stocks are not expensive because of overvaluation then it can be a good buy. You need to see the underlying financials and growth prospects before investing in any expensive stocks.