Tags: Blodget | Apple | Value | trillion

Blodget: Apple’s Market Value Could Top $1 Trillion

Thursday, 01 March 2012 08:15 AM

Technology bellwether Apple recently topped $500 billion in market capitalization, and it's not inconceivable for the company to hit $1 trillion, writes Henry Blodget, a former equities analyst and CEO of Business Insider.

Apple's stock still is not expensive on traditional valuation measures, Blodget writes in Yahoo! The Daily Ticker column.

"The stock trades at a 15 times trailing price-earnings ratio, which is about the average price-earnings ratio for the market as a whole for the past century. Needless to say, Apple is growing its earnings vastly faster than the market as a whole," Blodget says.

Second, Apple has a way to go when it comes to penetrating its products across key categories.

"Macs, for example, still make up only about 10 percent of PC sales worldwide. iPhones, meanwhile, are only about 20 percent of the exploding global smartphone market, which itself is growing extremely rapidly. And Apple dominates the tablet market, which is still in its infancy," Blodget adds.

Add onto that Apple's steps take to roll out new products, television sets whispered to be one example, and the sky appears to be the limit.

"So it is not, actually, far-fetched to think that Apple's value could eventually hit $1 trillion or more," Blodget concludes.

At $500 billion, Apple is worth more than the gross domestic product figures in Poland, Belgium, Sweden, Saudi Arabia, or Taiwan, CNNMoney reports.
Apple shares, meanwhile are trading well above $500 a share.

"Investing $10,000 into Apple in 2000 would be worth about $966,667 today. Even since December 2010, just a little over a year ago, Apple has increased by $230 billion, almost 98 percent," writes Chris Dumont, a financial research analyst and contributing author at Investopedia.com.

"Although still far from Microsoft's record, set in late 1999 at $600 billion, at Apple's current growth, it might not be too long before it holds that title as well."

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