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Apple's Market Valuation Returns to $3 Trillion After Almost 18 Months

Rogifan said:
All tech stocks seem overvalued. How much of the valuations are based on fundamentals?
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Market Capitalization is just value based on stock price, while Market Value is based on various metrics such as price to sales ratio. But all the news I see today are using "Market Capitalization" instead.
Example
"total market value of a publicly traded company's outstanding shares and is commonly used to measure how much a company is worth"

This is like saying the Apple's actual worth is 3 Trillion based on its share price but it's not. Not like they have assets or cash that amount to 3 trillion, see the below stats. This capitalization is so misleading as an indicator of a companies wealth. Yes Apple is very well off, but not to the extent this 3 trillion news portrays. :D

APPL
Revenue in 2023 (TTM): $385.09 B
Earnings in 2023 (TTM): $112.30 B
P/E ratio as of June 2023 (TTM): 32.6
P/S ratio as of June 2023 (TTM): 7.86
Total assets on the balance sheet as of March 2023 : $332.16 B
Total liabilities on the balance sheet as of March 2023 : $270.00 B
Total debt on the balance sheet as of March 2023 : $109.61 B
Cash on Hand as of March 2023 : $55.87 B
Net assets on the balance sheet as of March 2023 : $62.15 B
 
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Inflation-adjusted, it’s not higher than the past time it hit the same mark.

That’s the same thing many people don’t consider about the market. Even if it hits an all-time high, adjusted for inflation, it would still be down at least 10-15%.

I imagine this decade could be one where it can keep moving sideways and the lost value will be in purchasing power.
 
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MacProFCP said:
This is all very nice but was never Steve’s goal. Steve said it best, in an interview with Tim to his left, that he wants to build machines that he would love for his family and friends to use and to do so “at the lowest prices” they can.

Apple makes some great tech, but Tim is far more interested in profits and stock price than Steve ever was.
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What managers are “interested” in is inmaterial. They don’t operate in accordance to sound bites. They operate according to the company objectives, and incentives from compensation structure, both established by the Board who represent the owners of the company.

In 2010 when Jobs was CEO, executive managers were incentivized by stock performance, and directed to focus on profitability.

See that years proxy statement:
The Company believes that cash compensation is less effective than long-term equity awards in achieving the goal of the Company’s executive compensation program. Accordingly, cash compensation for the named executive officers…represented approximately 11% of the officers’ target total compensation
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Performance Criteria. Beginning in 2009, the Compensation Committee changed the performance criteria …to adjusted sales and adjusted operating income
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The company did not incentivize its executive managers favoring cash, nor set targets for total devices sold, or market penetration rates or etc irrespective of price. It wanted them get as much cash from sales as possible, and retain as much in profit as possible.
 
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Steve121178 said:
I think it will do more damage to the bottom line when it inevitably tanks.

The masses won't adopt ridiculous bulky headsets at such extravagant hideously massive costs, regardless of whatever technology and capability it has. It's about as niche as it can get.
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I don't know if you realize this but even if nobody, zero people bought the Vision Pro, it would not take it below the value it is right now. The projection is that Vision Pro will fail, so potentially, it will go even higher after that failure.
 
Steve121178 said:
You can save it. I don't see people stampeding to pick up headsets starting at 4 grand.

Even if they make a peasant version for 2 grand that would still be a tall ask.
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People are dropping 1k on a phone without batting an eyelid, you think they won't pay 2k for a headset offering them 2 screens? the cinema experience etc?...with 0% finance?.....fair enough but I'm betting they will, I only wish I could buy more shares before this thing takes off.
 
MacProFCP said:
This is all very nice but was never Steve’s goal. Steve said it best, in an interview with Tim to his left, that he wants to build machines that he would love for his family and friends to use and to do so “at the lowest prices” they can.

Apple makes some great tech, but Tim is far more interested in profits and stock price than Steve ever was.

Two very capable people running the worlds most important company in two VERY different ways.

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There's little if any evidence to support what you're saying. Adjusting for inflation, every category is cheaper now than it ever was...ever.
 
Realityck said:
Market Capitalization is just value based on stock price, while Market Value is based on various metrics such as price to sales ratio. But all the news I see today are using "Market Capitalization" instead.
Example
"total market value of a publicly traded company's outstanding shares and is commonly used to measure how much a company is worth"

This is like saying the Apple's actual worth is 3 Trillion based on its share price but it's not. Not like they have assets or cash that amount to 3 trillion, see the below stats. This capitalization is so misleading as an indicator of a companies wealth. Yes Apple is very well off, but not to the extent this 3 trillion news portrays. :D

APPL
Revenue in 2023 (TTM): $385.09 B
Earnings in 2023 (TTM): $112.30 B
P/E ratio as of June 2023 (TTM): 32.6
P/S ratio as of June 2023 (TTM): 7.86
Total assets on the balance sheet as of March 2023 : $332.16 B
Total liabilities on the balance sheet as of March 2023 : $270.00 B
Total debt on the balance sheet as of March 2023 : $109.61 B
Cash on Hand as of March 2023 : $55.87 B
Net assets on the balance sheet as of March 2023 : $62.15 B
Click to expand...
One thing that none of that will tell you is the value of the brand name, Apple. If Samsung somehow bought up the company and started selling cheapo $100 phones that cost $10 to build with the Apple logo on it, I guarantee that you would see why they're worth $3 trillion. And honestly, if you can't see why buying out this entire company would cost you $3 trillion, I don't know what to tell you. Take something like TSLA on the other hand, that company is probably worth 1/10th of its stock price, as being worth 8 Toyotas is absolutely absurd.
 
Unregistered 4U said:
Listen I know Apple’s valuation is (x) trillion, but you have to understand, they could be (x+rnd(x)) trillion if they would just (do the thing I want them to do that’s not financially viable).

That’s why they’re (doomed/beleaguered) in the long run.
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My feelings exactly! I do not understand why they will not serve the niche I want them to serve….
 
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I can almost guarantee you that Tim Cook isn’t making a big deal about this — he probably sees it as a distraction. A company focused on the stock price wouldn’t have produced such an ambitious project like the Vision Pro.
 
djphat2000 said:
You don't think Steve had a hand in picking his successor?

It's not like Tim got rid of the mac mini or MacBook Air. We also wouldn't have M# series chips. We may very well still be under intel's grip. It's not like he choose AMD instead of intel to save a buck.

I don't think he ever meant lowest possible price to mean no profit. He meant the lowest price they can do. Within means of whatever profit they needed/wanted to make.
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Steve definitely hand-picked Tim.

No question there at all.

My point is that Steve's vision for running the company differs greatly from Tim's. After Steve died, Tim made a number of changes on lots of items from executive compensation to stock buy to product timelines.

Steve was a visionary and wanted product excellence.

Tim is a financial genius and operations magician.

They are very different and I miss Apple have a consistent timeline of great products; boom, boom, boom.
 
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Love him or hate him, Warren Buffett knows how (and when!) to pick stocks. As to why he picked Apple, there are two interesting quotes from a Yahoo finance article:

“If you’re an Apple user and somebody offers you $10,000 but the only provision is that they’ll take away your iPhone and you’ll never be able to buy another, you’re not gonna take it,” he said.
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His initial interest in purchasing Apple stock in 2016 stemmed from observing his grandchildren’s fascination with their iPhones during visits to an Omaha Dairy Queen, a company owned by Berkshire.
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The ‘thing’ that will make Apple a 4T company is if their competition (Android world) continues with their current business model of poor support, poor security, short product life, and rare updates.
 
MrRom92 said:
It took them like 40-something years to become a trillion dollar company, and they were the first to ever do it… that was only 5 years ago, and they’ve since tripled that??
That is the definition of exponential growth
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A financial advisor once told me that it takes (on average) 10 to 15 years to make your first $1,000,000 with the right savings and investment plans, 5 years to make your second million, 2 years to make your third million and another 2 years to make your 4th million. Apple just threw this process out the window.

I marked on my calendar: Jan 3rd, 2023: Apple stock was priced at $125. Down from a high of $174.55. I knew at the very moment that $125 was a bargain discount.
 
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mr cook is running the ship well
as for stock prices in general - past performance does not equal future performance
no body can predict the future
glad i still hold aapl
should have bought nvda during the dip
 
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