Morningstar’s Revenue Atlas explores how global companies actually generate revenue, challenging the idea that stock markets cleanly reflect domestic economies. It shows that large firms often earn a majority of revenue outside their home country, with US companies deriving roughly 40% abroad. The implication is that geographic exposure in portfolios may be far less intuitive than investors assume.
Morningstar Revenue Atlas
Morningstar
Dan Lefkovitz
Research
7 Pages
Key Takeaways
Global Revenue Mismatch: US equities generate about 40% of revenue internationally, highlighting a disconnect between market domicile and economic exposure.
Index Exposure Distortion: Over 50% of revenue for several developed market indexes comes from foreign sources, reducing the effectiveness of country-based allocation strategies.
Sector Driven Globalization: Technology and consumer sectors derive up to 60%+ of revenue overseas, compared to under 20% for more domestically tied sectors like utilities.