Forex Marketz Daily Forex News – Fully Markets Update
The maker of iPhone, Apple (AAPL: Nasdaq) recently stunned Wall Street with blow out earnings. Sometimes, one has to wonder if their Chief Executive Officer, Tim Cook or their chief financial officer really know how much their company is actually worth. Question is, do we?
Apple is the first publically traded corporation whose stock has ever closed over $700 billion in market capitalization. Will it go higher? Can we see its market cap hit a trillion dollars? Why not?
By the way, according to Forbes, the entire Russian stock market has a market cap of just $531 billion. It is not very uncommon to acknowledge that the average company’s stock on the exchange sells at or around 18 times price per earnings (EPS). The stock for Apple is undervalued and trading at a mere 14 times earnings. This is just by giving their balance sheet a quick glance and acknowledging several key facts. They have sustainable earnings, product depth and strong technology and technological advancement.
Apple Knows this and is Buying back Stock
Apple knows this. They know they have a huge cash pile and this is why Tim Cook is borrowing money. Why is he borrowing money? To buy back shares of Apple. He knows his company is worth way more than others acknowledge or even comprehend.
So why is the market holding back on this behemoth’s stock? Quite possibly investors are very skeptical shares of AAPL have such a high market capitalization. If Reuters is right, it is worth more than Russia’s stock market. Apple’s market cap is bigger than both Google (GOOG: Nasdaq) and Microsoft (MSFT: Nasdaq). Well if you do the math, Apple is worth more than both Google and Microsoft combined.
Looking at the numbers, one comes to a simple conclusion. The stock of Apple is worth a lot more than where it is trading at. One does not trade a company like Apple. One owns it.
