Apple is trading intraday at $206-207.
This makes Apple the first trillion dollar market value company.
Jim Cramer has noted that if Apple had a price earnings (P/E ratio) multiple that was the average for retail companies then it would be at about a $1.5 trillion market valuation.
Apple has earnings per share of $10.85. At share price of $207 this is a PE ratio of 19.
Apples 2018 third quarter ended June 30, 2018. They had quarterly revenue of $53.3 billion, an increase of 17% from the year-ago quarter, and quarterly earnings per diluted share of $2.34, up 40%. International sales accounted for 60% of the quarter’s revenue.
Apple is providing the following guidance for its fiscal 2018 fourth quarter:
* revenue between $60 billion and $62 billion
* gross margin between 38 percent and 38.5 percent
* operating expenses between $7.95 billion and $8.05 billion
* other income/(expense) of $300 million
* tax rate of approximately 15 percent before discrete items
Apple’s board of directors has declared a cash dividend of $0.73 per share of the Company’s common stock.
Others predict that Apple will get a higher P/E when its service revenue reaches 20% of total revenue.
Apple reported $9.55 billion in services revenue in the last quarter and this had grown by 31%.
Apple bought back $23.5 billion in stock in first quarter and another $20 billion in the second quarter. Stock buybacks tend to increase the stock price as it shows that the company believes they are undervalued and it also reduces the supply of stock that is available.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.
5 thoughts on “Apple is the first trillion dollar company and could go to $1.5 trillion”
Russia has a GDP of about 2.6 trillion dollars.
Is Apple capitalization nearly half the GDP of Russia?
Sounds crazy to me.
Apple valuation will soon exceed the value of the entire Russian stock market. It is a fact you can take to the bank.
Good for them. Lots of hard working engineers at that company.
Apple sell an brand name, yes products are good but not so good.
Show in that they are the only ones having good margins selling phones.
And GE sinks and sinks due to bad/expensive acquisitions, late market entry (GE Digital), but more so due to tight margins on incredibly expensive infrastructure implements that the whole world needs (locomotives, gas turbines, electrical transmission equipment, nuclear power plants, etc.).
Apple has tremendous margins on phones, but GE only makes a profit maintaining the jet engines; they are sold at a loss.
Who can make phones? ZTE, Samsung, Apple, Google, etc..
Who can make reliable jet engines? RR, PWC, GE, Safran, not-etc..
I hope GE regains its rightful place as world mover.
Comments are closed.