Apple: Future trillion dollar company trading at 46% discount

“Apple (AAPL) has been on a tear for the last 5 years with the stock up approximately 450% compared to the 17% increase in the broader Nasdaq index,” Nadeem Moulvi writes for Seeking Alpha.

“Apple has been posting all-time highs on a daily basis and, in the process, has become the world’s largest company by market capitalization, bypassing Exxon Mobil (XOM),” Moulvi writes. “Trading at $463.97, AAPL has a market capitalization of $432.59 billion. By my estimation, Apple will become the first trillion dollar company in the next 36 months. At current levels, the stock trades at a significant discount to its intrinsic value.”

Moulvi writes, “Apple is expected to be trading at $1,200 a share 3 years in the future. Assuming 950 million shares outstanding, the company is projected to have a market capitalization of $1.14 trillion making it the first trillion dollar company on the planet. At current levels, although hard to believe, Apple is grossly mispriced by the market and is a bargain.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

21 Comments

  1. Apple should use its status as the most successful corporation of all time to start the “corporate evolution” where we transition to absolute sustainability. The profit motive must be replaced by something more empathetic and reciprocal.

        1. ‘Cause that’s what “sustainability” is all about–taking, or occupying, stuff that doesn’t belong to you. And if you don’t get that, you just don’t get it.

      1. Mine are free cuz I’m a longtime shareholder from an inheritance not from individual merit. I play the game but it’s rigged and unsustainable. What if we were all “shareholders” in a quest for something greater than tiny screens and big bank accounts. Sorry for the idealism. Back to work everyone!

        1. Why is it not surprising that you started out with the proverbial silver spoon in your mouth? No one here cares about your BS guilt. Here’s an idea: why don’t you try, instead, to be half the man as the guy who earned that fortune in your family? You would then have to create or offer something genuinely useful to your fellow citizens. Instead of just pissin’ away the money and mouthing off, that is.

    1. Never thought of it that way but yes, I agree with you. I think money is grossly outdated and we should just use resources and Apple should manage them. They seem to be one of if not the only organization that knows how to manage anything.

  2. Look at the AAPL five-year chart. Starting three years ago, you can plot a perfectly straight line (between the short term fluctuations), up to today’s price. Extending that line, AAPL would be at about $800 in three years, and that would be more than pretty decent. $1200 in three years seems a bit overly optimistic.

    Then again, Apple may have $400 in cash per share by that time (or the equivalent including acquisitions and infrastructure improvements), so maybe $1200 is not so crazy.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.