Despite briefly passing Exxcon Mobile as the world's most valuable company, Reuters Breakingviews columnist Robert Cyran believes Apple is still underpriced.
Could Apple be worth $1 trillion? It's conceivable. The $347 billion maker of iPhones and iPads became - if only briefly - the most valuable company in the United States when it overtook Exxon Mobil on Tuesday. Yet Apple's sales have been surging 80 percent a year, and its profit faster. What's more, it trades roughly in line with the growing stock market - and at less than half the price-to-earnings multiple it fetched in 2006, when revenue growth was much slower.
Cyran notes that if Apple was on the same P/E multiple it traded on in 2006 it would be worth almost $900 billion.
"A premium for today's faster growth could get it to $1 trillion. Apple can't be so cheap just because Steven P. Jobs, the chief executive, is in bad health."
Read More [via 9to5Mac]
Could Apple be worth $1 trillion? It's conceivable. The $347 billion maker of iPhones and iPads became - if only briefly - the most valuable company in the United States when it overtook Exxon Mobil on Tuesday. Yet Apple's sales have been surging 80 percent a year, and its profit faster. What's more, it trades roughly in line with the growing stock market - and at less than half the price-to-earnings multiple it fetched in 2006, when revenue growth was much slower.
Cyran notes that if Apple was on the same P/E multiple it traded on in 2006 it would be worth almost $900 billion.
"A premium for today's faster growth could get it to $1 trillion. Apple can't be so cheap just because Steven P. Jobs, the chief executive, is in bad health."
Read More [via 9to5Mac]