Apple overtaken by Google in Enterprise Value despite having four times the cash flow

Image: jobsplane.in

Image: jobsplane.in

Apple has now been overtaken by Google in ‘Enterprise Value,’ a key measure of the value of a company, despite generating four times as much cash flow, reports Seeking Alpha.

While Apple’s market capitalisation (the total value of all its shares) remains higher, this value includes $141B in cash. Enterprise Value deducts any cash held by a company as – if you were wealthy enough to buy Apple – you effectively immediately get that back from the price you paid. EV is thus considered a better measure of the underlying value the market places on a company. By this measure, the market reckons Apple is worth $339B, while Google is now valued at $342B …  Read more

Report: Drops in Apple’s share price historically followed by surge in earnings growth

In October, Apple stock dropped below 600 for the first time since July. Since then, following a number of new product launches, AAPL has continued to fall and now only sits slightly higher than last week at roughly 550 per share and a market cap of $518 billion. While many have pointed to uncertainty regarding new product launches and executive level changes as the cause of Apple’s falling share price, no one quite has a definitive answer for why AAPL has hit a nearly six-month low. In a report today, titled “A dramatic reading of Apple’s share price”, Asymco analyst Horace Dediu might have the answer.

Dediu studied 13 bear AAPL markets starting with the October 2001 launch of the iPod. As noted in the report, Apple’s stock had just fallen 70 percent year-over-year and continued to drop another 20 percent following the iPod launch. However, since the iPhone launch, Dediu found “every dramatic drop in share price was followed by a surge in earnings growth.” The graph above maps earnings growth following bear Apple markets since the 2007 iPhone introduction.

So, why exactly does this happen? Dediu explained his theory:

Read more

Apple’s stock opens at record $680 with $637B market cap following win against Samsung

Apple’s stock opened at a record $690 per share following its triumph in the pivotal patents trial against Samsung last Friday. Today is the first day of trading since Apple came out on top and its latest record soars past the previous best of $674.88 per share. The unparallelled all-time high also forced Apple’s market capitalization to $637 billion.

Check it out: NASDAQ:AAPL

Read more

AAPL hits all time high, market cap again passes $600B (update closes at: 648)

Some good news for those who did not sell their AAPL shares to buy plummeting Facebook stock:

.

Apple passed its all-time high of 644 and its market cap is once again over $600 billion. Apple last hit both milestones on April 10. The news follows yesterday’s first dividend disbursement in 17 years that paid $2.65 per share of the company’s common stock. The stock price closed over 648.

Also today, Jeffries Analyst Peter Misek reported that Apple’s HDTV production was a go with early 2013 set as a target shipping date.

Investors are also looking forward to what appears to be a huge product launch in September which should include a new iPhone, an iPad Mini and other products for the holiday season.

Apple’s market cap just crossed $600B

As the market just begins to open today, Apple’s market cap crossed the $600 billion threshold. Today’s accomplishment comes just a month after the company hit the $500 billion threshold. The market overall is down.

To compare, Microsoft holds the record for the highest market cap ever of $619 billion in 2000 (over $800 billion in today’s dollars). At the time of this writing, Microsoft is sitting at a $250 billion market cap. If some analysts are to be believed, the AAPL train will keep rolling to a $1 trillion market cap in the coming years.

Apple now dwarfs the No. 2 company, Exxon, by a comfortable $200 billion. We are looking forward to April 24 when Apple will talk Q2 2012 numbers.

Read more

Bullish analysts make the case for AAPL hitting $1 Trillion market cap on $1000+ share price

Fortune relays Piper Jaffray/Gene Munster’s bullish prediction that Apple could reach a $1Trillion valuation in a few years by taking some its competitors’ value while also benefiting from increased tech investment and sales. The first point he illustrates (above) is that during the period where AAPL gained $400B in valuation (2008 to present), some of its key competitors lost the same amount in market cap. The second point is rationalized thusly:

We believe dollars invested in US technology companies will increase ~5% y/y on average for the next three years (CY12-CY14). By comparison, dollars invested in US tech companies were up 9% y/y in 2011. Therefore, the tech sector will add ~$390 billion in market cap through 2014. We assume Apple could capture half of this market cap (from 85% in the 4 years prior).Therefore, the tech sector will add ~$390 billion in market cap through 2014. We assume Apple could capture half of this market cap (from 85% in the 4 years prior).

Here’s a video from CNBC where Munster explains his world view: Apple and Samsung rule the mobile roost and companies like Nokia and RIM disappears into the ether.

Munster’s figures follow another report from yesterday by Topeka’s Brian White who first made the $1000 AAPL call… Read more

Apple passed $400B market cap briefly today, set all-time company high of $431 a share

Hot off the heels of Apple’s iBook Textbooks and iBooks Author announcement, the Cupertino, Calif.-based Company passed a $400 billion market cap briefly today, AllThingsD pointed out. Apple also saw a new company record of $431 a share this afternoon —up $2 from yesterday’s record. As the afternoon continued on, Apple’s market cap went down to $398 billion again, but it is still close to coming back. For comparison, the world’s most valuable company, Exxon, has a market cap of $417 billion. Apple was at one time the most valuable company in 2011.

As CNN Money pointed out, Apple with a market cap of $400 billion is worth more than the countries Greece, Austria, Argentina, and South Africa.

Apple dominated financially in 2011, and it continues in 2012. Next Tuesday, the company will report what is expected to be record earnings from Q4. Apple is also expected to break past the sales of 5 million Macs and up to 30 million iPhones, some analysts claimed. We will be covering Apple’s financial announcement next Tuesday. Stay tuned!

Read more

AAPL reaches all-time high of $429 a share, market cap closes in on $400B

With an announcement tomorrow in New York City and an earnings call on Jan. 24, Apple Inc., has reached an all-time high of $429.47 per share on today’s market, and it closed at $429.11. Being up more than four points today, Apple is continuing to close in on a $400B market cap and sits at just $398.70B at closing.

Apple is expected to have had a record breaking Q1, which will be reported in an earnings call with CEO Tim Cook on Jan. 24. With the help of holiday sales, some analysts predict Apple sold 5 million Macs and around 30 million iPhones.

Tomorrow’s media event in New York City also added to today’s stock frenzy. Apple is expected to make a major announcement in the textbook industry. There have been many reports that Apple made the necessary partnerships with publishers, and may even launch its own textbook creation tool — which Ars Technica called a “GarageBand for e-books.” Apple teased the event as an education announcement. Per usual, 9to5Mac will be covering both events. Tomorrow’s event begins at 10 a.m., so stick with us for coverage. Any final predictions?

Read more

AAPL closes the day at all time high of $411.63, up 2.8%

We’re not sure exactly what caused today’s spike, but Apple stock had a huge day ending up 2.8% at $411.65 a share for a Market Cap of $381.62B against a down market. It had reached as high as $413.23 from a morning low of $395.20. Notably, Apple is now worth over $23B more than Exxon and is approaching the combined value of Microsoft and Google.

AAPL is now most valuable company in the world (Update: Closes lower than Exxon)

.

Apple just passed Exxon in Market Cap to become the world’s most valuable company. Quite a turnaround for a company that was on its last legs just over a decade ago.  AAPL passed the 400 mark last month on the back of monster earnings news but fell sharply as the US market plummeted over the last week.  Luckily for Apple, it didn’t fall nearly as sharply as Exxon, in the face of lowered oil costs.

The markets are still open and volatile today but at this moment, 1:19PM EDT, Apple’s market cap is at $341.53B while Exxon Mobile’s is at $341.51B.

Congratulations Apple!

Update 2:00EDT: Apple is now on top by over $1B (image below)

Update2 4PM ET. AAPL closed at $346.74B, Exxon rallied at the end of the day to $348.32B

Read more