CSL is now the largest company on the ASX 200

CSL Limited (ASX:CSL) has overtaken Commonwealth Bank of Australia (ASX:CBA) to become the largest company on the ASX 200…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There has been a changing of the guard atop the S&P/ASX 200 index this week.

Following the broad market selloff and yesterday's rebound, the CSL Limited (ASX: CSL) share price has climbed to a level which makes the biotherapeutics giant Australia's largest listed company.

At the close of play on Tuesday, CSL had a market capitalisation of $140.2 billion.

This is just over $10 billion larger than the country's former largest listed company, Commonwealth Bank of Australia (ASX: CBA).

Commonwealth Bank's shares have fallen heavily over the last three weeks. This has been driven by concerns over the coronavirus outbreak and weaker net interest margins following the recent cash rate cut.

This 20% decline from the 52-week high it reached in the middle of February has left Commonwealth Bank with a market capitalisation of $129.9 billion.

And while it has been dethroned from the top of the S&P/ASX 200 index, it is still comfortably Australia's largest bank.

What are the market capitalisations of the rest of the big four banks?

The next biggest is Australia's oldest bank, Westpac Banking Corp (ASX: WBC). With the Westpac share price ending Tuesday at $20.54, it now has a market capitalisation of $74.2 million. This means Commonwealth Bank is some 75% larger than its nearest rival right now.

After Westpac, National Australia Bank Ltd (ASX: NAB) is the third largest Australian bank. It has a market capitalisation of $62.2 billion currently.

And finally, on Tuesday the Australia and New Zealand Banking Group (ASX: ANZ) share price traded at $21.13. Which gives it a market capitalisation of $59.9 billion.

Can CSL grow larger?

Given CSL's strong long-term growth potential thanks to its high quality CSL Behring and Seqirus businesses, I'm confident that it can grow even larger over the next decade.

So, despite it becoming Australia's largest listed company, I don't think it is too late to buy shares if you're prepared to make a long term and patient investment.

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

Bell Potter just put a buy rating on this ASX 200 stock

Let's see which high-flying stock has been tipped to keep rising.

Read more »

A happy man and woman sit having a coffee in a cafe while she holds up her phone to show him the ASX shares that did best today.
Broker Notes

JP Morgan initiates coverage on Sigma Healthcare shares with an overweight rating

Sigma Healthcare shares have soared more than 100% in the past year.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

Another positive session is expected for Aussie investors today.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Share Market News

Gold Road Resources shareholders give strong approval for Gold Fields takeover

Gold Road Resources shares have soared more than 100% in the past year.

Read more »

Businessman holding bear figurine in one palm and bull figurine in other
Broker Notes

One ASX 300 stock to buy and one to sell: expert

Investors should be buying only one of these shares.

Read more »

ASX 300 share investors in suits running a race on an athletics track
Share Gainers

Here are the top 10 ASX 200 shares today

It was a strong start to the week's trading for ASX shares this Monday.

Read more »

man with dog on his lap looking at his phone in his home.
Blue Chip Shares

Buy CSL and these dirt cheap ASX 200 blue chip shares at 52-week lows

These shares are down in the dumps but analysts think they could be buys.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Share Market News

Should you buy GQG Partners or Greatland Resources as they join the ASX 200 today?

Let's see what the experts have to say.

Read more »