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How much is my desk worth on the market? However much somebody is willing to pay for it. As the article states, Apple's "value" as a company comes from, in par
by coryfklein 8y ago
How much is my desk worth on the market? However much somebody is willing to pay for it.
As the article states, Apple's "value" as a company comes from, in part, the fact that it's a good investment. Some may argue that "the fundamentals" of the balance sheets and whatnot doesn't justify a $1T valuation, but they would be missing the intangible parts of the business which cause it to be worth exactly that much.
- Isamu 8y agoI'm not saying Apple isn't worth a $1T market cap. I'm just saying you wouldn't use market cap to calculate if a company were a sound long-term investment. You'd look at the fundamentals, then make a determination of what you think the long-term value of the business is, then you could look at the current market cap and determine if it is under- or overvalued. Breathless reporting on the market cap of companies is sloppy, I think. The market cap kinda floats around, and worst case may be completely unrelated to the true long term value of a company. Warren Buffet for some time said that he thought Apple was undervalued. I have no idea what he currently thinks, but it is probably still a reasonable value.
- Allvitende 8y ago>Warren Buffet for some time said that he thought Apple was undervalued. I have no idea what he currently thinks, but it is probably still a reasonable value. He currently owns ~5% of the company.