What it means
Forbes was founded in 1917 by Bertie Charles Forbes and has covered business, investing, entrepreneurship and leadership ever since. It publishes a print magazine, a news website and a series of conferences and events.
A large part of its content is written by outside contributors as well as staff journalists. The company is most famous for its lists.
These include rankings of the richest people, the largest public companies, top employers, best banks and young entrepreneurs, each compiled using its own stated methods. The methods differ between lists, so a ranking by wealth uses different information than one that ranks company size.
For businesses, appearing on a Forbes list can be a significant marketing asset. It builds credibility with customers, investors and recruits, and founders often cite it in pitch materials and on websites.
Some lists, particularly those compiled with outside partners, may involve selection criteria that readers should understand before relying on them. Readers should treat the lists as informed estimates rather than audited facts.
Private wealth in particular cannot be measured precisely, because it depends on the valuation of unlisted companies, property and other assets that do not have daily prices. Rankings can therefore change as methods and estimates are updated.
Finance professionals use Forbes as a source of context, much as they would any respected business publication. It can help in researching competitors, understanding who runs the industry and spotting trends.
Anything that matters for a decision should still be checked against primary sources such as company filings. Forbes also publishes content on personal finance, technology and leadership, so the brand reaches readers well beyond investors.
Its audience includes many entrepreneurs who use its stories for ideas, contacts and inspiration.
In practice
Real-world examples.
Example
A founder of a fast-growing food company is named on a list of top young entrepreneurs. She features the recognition on the company website and in investor presentations. The finance director notes that it helps in negotiations with suppliers who want reassurance about the company's standing.
Example
A procurement manager at a manufacturer reads a Forbes ranking of largest companies in its sector. He uses it as a starting point for identifying potential customers, then checks each one's financial statements before agreeing credit terms.
Example
A bank's marketing team learns that it has been placed on a ranking of top banks by a Forbes partner programme. Before using the logo, compliance reviews the selection method and the licence terms for using it in advertising. In every case the name carries weight, but the facts behind it still need checking.
Case study
Seen in the real world.
Greenfield Logistics is a fictional courier company that was named on a Forbes list for fast-growing firms. The chief executive wanted to use the announcement in a bond marketing document. The finance team was asked to confirm that using the recognition was appropriate.
The team read the methodology carefully and found that the ranking was based on revenue growth over three years, not profitability. Growth had been impressive, but the company's margin had fallen during the same period.
In this illustrative story, the company chose to mention the ranking and describe it accurately as a growth ranking. It placed it next to a clear statement of margin trends, so investors could see the full picture and the company avoided any suggestion that the ranking vouched for financial strength. The legal adviser approved the wording, and the offering went ahead without any questions from regulators about the claim. The investor relations team also kept a record of the methodology in the file for the offering, so that anyone reviewing the document later could see how the claim had been checked.
Watch out
Common mistakes.
- Treating a Forbes ranking as an audited statement of wealth or performance, when most are estimates.
- Quoting a ranking without saying what it measures, such as growth rather than profit.
- Assuming every list is compiled by the same method, when each one has its own criteria and sources.
Questions
People also ask.
Who started Forbes?
Bertie Charles Forbes founded the magazine in 1917, and it has been a major name in business journalism ever since.
Are Forbes lists based on official data?
They draw on a mix of public filings, interviews and estimates by journalists, so accuracy varies with how much information is available. Lists of public companies tend to be more precise than lists of private wealth.
Can a company pay to be on a Forbes list?
Editorial lists are compiled by the publication, but some branded lists are produced with partners and may involve fees, so check how a list was created. The methodology note published with a list is the best place to look for this.
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