What is the average annual revenue of the S and P 500 companies?

Answer 1

The average annual revenue of the S&P 500 companies varies depending on the year and how you calculate it. Here are some different perspectives:

Median: As of October 26, 2023, the median market capitalization of the S&P 500 companies is $43.4 billion. If we assume an average revenue-to-market ratio of 1.5 (which is a common rule of thumb), then the median annual revenue would be around $65.1 billion.

Mean: Based on data from Yardeni Research, the average annual aggregate revenue of the S&P 500 companies for the past 10 years (2013-2022) is $16.8 trillion. However, this is the total revenue for all 500 companies combined, so the average revenue per company would be $33.6 billion.

Weighted average: Since larger companies have a bigger impact on the index, a weighted average based on market capitalization might be more representative. According to FactSet, the weighted average annual revenue of the S&P 500 companies for 2022 was $224.9 billion.

Therefore, the answer depends on how you define "average" and which data points you consider. It could range from $33.6 billion to $224.9 billion per company annually.

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