Apple: The race to a trillion

Apple got within 10.5% of a twelve-figure valuation last month before taking a breath.

Alphabet (Google), Microsoft, Amazon and Facebook aren’t far behind. Two charts:

Market capitalization:

trillion market caps

Click to enlarge.

Price to earnings, displayed on a log scale to squeeze in Amazon:

race to trillion pe ratios

My take: There’s nothing magical about a market capitalization of one trillion U.S. dollars, except perhaps as a psychological barrier. But when oh when will Apple be comparably valued?

3 Comments

  1. Robert Paul Leitao said:

    What’s remarkable about Apple’s progress toward a $1 trillion market cap is that it is occurring within the context of a massive share repurchase program. $210 billion has been approved for share repurchases under the current program. As of the end of the last fiscal year, $166 billion in repurchases have been completed. In other words, while the company is approaching a $1 trillion market cap, management is actively reducing the number of shares outstanding.

    7
    December 2, 2017
    • David Drinkwater said:

      AND this does not count cash on the books (albeit in foreign countries).

      0
      December 3, 2017
  2. David Drinkwater said:

    Logarithmic scale: for those cases where, with the exception of a very few natural phenomena, the data are meaningless. Once plotted in log or log-log format, any phenemenon becomes a straight line! (Sorry, Engineering Humor.)

    0
    December 3, 2017

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