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.
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.