Pawan Fangaria
New member
Sometime ago, Carl Icahn, one of Apple's top 10 investors wished (of course it must be his wish 
) Apple should be valued at over 1 trillion dollar with a price tag of ~$216 per share. That would be a sweet spot for apple, otherwise can it turn sour?
View attachment 13908
Well, today, Apple is the most valued company with a market cap of ~740 billion at a P/E of ~17, which is expensive compared to semiconductor companies like Intel at a P/E of ~14 and Samsung at a P/E of ~9. However, P/E of apple is much lower compared to that of Google at ~26.5. On a market cap basis, the second largest Google has a market cap of ~$373 billion, just about half of apple market cap. So, chances of Apple market cap reaching 1 trillion are debatable. The top most factor against it is that it is already at the top valuation of 740 billion, how much more it can go? However, for a 1 trillion valuation, the Apple P/E needs to just breach the mark of 20 which would be still less than Google's P/E. But investors do not give much importance to P/E. It's the forward growth what matters.
In business terms, Apple has launched smartwatch a new product category. If that can fly like iPhone, then why not? Apple's desire has been that as they tied their smartwatch to work with iPhone only. But will all consumers buy a high priced smartwatch along with iPhone? The talks indicate that very small number of people are inclined to do so. On the other hand, Samsung S6 Edge has smartly challenged the iPhone 6? So, if I were one, I would go and buy a Pebble or any other watch which is compatible with iOS as well as Android and then have either iPhone or S6.
Apple is expected to get into TV business as well, may be by next year? It's yet another competition against Samsung.
As of Smartphones, and smartwatch, it's unclear which way the market will go. But stakes are high, better to feel the pulse before you lose your money. In six months, it can be substantial loss for some people and win for the other people.
) Apple should be valued at over 1 trillion dollar with a price tag of ~$216 per share. That would be a sweet spot for apple, otherwise can it turn sour?View attachment 13908
Well, today, Apple is the most valued company with a market cap of ~740 billion at a P/E of ~17, which is expensive compared to semiconductor companies like Intel at a P/E of ~14 and Samsung at a P/E of ~9. However, P/E of apple is much lower compared to that of Google at ~26.5. On a market cap basis, the second largest Google has a market cap of ~$373 billion, just about half of apple market cap. So, chances of Apple market cap reaching 1 trillion are debatable. The top most factor against it is that it is already at the top valuation of 740 billion, how much more it can go? However, for a 1 trillion valuation, the Apple P/E needs to just breach the mark of 20 which would be still less than Google's P/E. But investors do not give much importance to P/E. It's the forward growth what matters.
In business terms, Apple has launched smartwatch a new product category. If that can fly like iPhone, then why not? Apple's desire has been that as they tied their smartwatch to work with iPhone only. But will all consumers buy a high priced smartwatch along with iPhone? The talks indicate that very small number of people are inclined to do so. On the other hand, Samsung S6 Edge has smartly challenged the iPhone 6? So, if I were one, I would go and buy a Pebble or any other watch which is compatible with iOS as well as Android and then have either iPhone or S6.
Apple is expected to get into TV business as well, may be by next year? It's yet another competition against Samsung.
As of Smartphones, and smartwatch, it's unclear which way the market will go. But stakes are high, better to feel the pulse before you lose your money. In six months, it can be substantial loss for some people and win for the other people.
