How Apple might soon become the world’s first $1 trillion dollar company
With shares of Apple now hovering in the $133 range, Apple’s market cap currently checks in at a whopping $775 billion. To put that figure into perspective, Apple is worth more than double the value of Exxon. Even more impressive is that Apple is now worth more than the market values of Google and Microsoft combined; together, both companies are worth $727 billion.
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Looking ahead, it’s only natural to wonder if and when Apple might become the first company to ever reach $1 trillion in value. Crunching some numbers, Apple reaching a $1 trillion market cap isn’t as outlandish as it may initially sound.
If we assume, for the sake of this exercise, that the number of outstanding Apple shares remains unchanged for the next few months, Apple’s share price would have to rise to $171 in order for the company to hit a $1 trillion valuation. Hitting $171 a share would require a 28% increase in share price, something not entirely outside the realm of possibility. Indeed, some analysts have already tacked on a $165 price target onto Apple shares.
What’s more, a share price of $171 would only raise Apple’s P/E ratio to about 23, a rather low number as far as tech companies go. Google and Facebook, for example, have P/E ratios of 26 and 73 respectively. And with the Apple Watch set to launch soon, not to mention rumors of an Apple Car swirling about, it stands to reason that Apple has plenty of room for growth ahead.
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This article was originally published on BGR.com