Liverpool Team Emerges As Europe's Most Valuable Squad
Chelsea are fifth, while Manchester United and Tottenham are in the top 10.
With a total value of £33.7m, Bundesliga side Paderborn are bottom of the table.
Liverpool are runaway leaders of the Premier League and need two victories from their remaining nine games to claim their first top-flight title in 30 years.
They won the Champions League last season and have added the Uefa Super Cup and Fifa Club World Cup this term.
Frank Lampard's Chelsea surprisingly sit fifth in the table with a squad value of £917m, but CIES say they have had a "strong increase thanks to the outbreak of many young talents following the transfer ban imposed by Fifa".
The CIES use a number of variables including the age of the player, performances, economic value of their club and inflation to work out the values of players.
Paris St-Germain's World Cup winning forward Kylian Mbappe, 21, has highest transfer value at more than £227m.
Most valuable squads
Liverpool England €1.405b
Manchester City England €1.361b
Barcelona Spain €1.170b
Real Madrid Spain €1.100b
Chelsea England €1.008b
Manchester United England €1.007b
Paris St-Germain France €979m
Atletico Madrid Spain €836m
Tottenham England €787m
Juventus Italy €783m
All figures from CIES Football Observatory