Daniel Hruska On Monday, August 20, 2012, Apple became the company with the highest market value in history. With 623,5 billion US dollars broke the record Microsoft, which was valued at $1999 billion in 618,9. Converted to shares, one piece of AAPL was worth $665,15 (roughly CZK 13). To what heights will Apple grow?
Brian White of Topeka Capital Markets said in a note to investors that previous companies with a value exceeding $500 billion had a dominant position in the market at the time, while Apple's share of the markets in which it is interested is definitely not a majority, which gives it great potential to future growth.
“For example, in its heyday, Microsoft held a 90% share of the PC operating system market. Intel, on the other hand, produced 80% of all processors sold, and Cisco, with its 70% share, dominated in network elements," White wrote. "In contrast, IDC estimates that Apple accounts for only 4,7% of the PC market (Q2012 64,4) and 2012% of the mobile phone market (QXNUMX XNUMX)."
Already in June of this year, White predicted that the $500 billion mark would not be Apple's last goal. Some investors, on the other hand, believed that this sum constituted a kind of barrier above which the shares of one company could not be maintained in the long term. Only five American companies - Cisco Systems, Exxon-Mobile, General Electric, Intel and Microsoft - have reached over half a trillion dollars.
All the mentioned companies reported P/E ratio over 60, while Apple's P/E currently stands at 15,4. In simpler terms, as the P/E ratio increases, the expected return on the stock decreases. So if you buy Apple stock now, it is very likely that it will go up and you will profit if you sell it in time.
White believes that with new products like the sixth-generation iPhone, "iPad mini" or new television set, Apple will reach the magical one trillion dollars. Add to that the sale of iPhones through the largest operator in the world - China Mobile. Topeka Capital Markets' 1-month estimate is $111 per AAPL share. Another estimate says that in calendar year 2013, Apple will generate the highest net profit of a public company ever.
Note editorial: Microsoft's highest value does not factor in inflation, so final numbers may vary. However, even on the raw numbers one can see the massive rise of Apple.
nice article, only the P/E is already at 15,47 see:
http://www.google.com/finance?q=NASDAQ:AAPL
Thanks, edited.
I think that if you factor in inflation, microsoft has historically had more value...
btw, I don't think Apple can make a billion. All analysts say that it will at best maintain its current value. it's hard to expand somewhere, rather a development like microsoft is expected - it will retain its dominant position, but its size prevents it from expanding more extreme - it can no longer afford what it could. see it on iOS 6, where it is clear that Google is further along with Android. also because he can afford to experiment more, since he had to catch up.
Bullshit… Apple does more or less the same thing. On the contrary, without Jobs, perhaps there will be more experimentation. The question is whether it is good.