5 ms·

so apple added $1t market cap in just 24 months, did apple actually created $1t value in any way or form to justify that $1t market cap increase?

mpweiher 6y ago
P/E ratio has been pretty consistent and reasonable in the 30s.
- samfisher83 6y ago
  Its P/E ratio was about 18 year ago. It has pretty much doubled in the last year.
rmah 6y ago
Apple made apx $115B in net income over that two year period and paid out around $30B in dividends. So... yeah. In case you're wondering how much $115B is in terms normal people can understand... if that was in $100 paper notes... - Stacked up on top of each other, it would reach 12,000 km high (the ISS orbits at about 400km) - The notes would weigh around 1,150 tons - To ship them, you'd need over 1000 4'x4' shipping pallets, each weighing a ton $115 billion is an absurdly huge amount of profits
- dis-sys 6y ago
  The answer is not convincing - with a comparable net income level, the world's largest bank ICBC only has 1/7 of apple's market cap. Vodafone had over 100 billion earnings back in 2014, that was like two years of apple earnings in 12 months, Vodafone never had a 24,000km high market cap built with $100 notes.
  - rmah 6y ago
    For ICBC, it's a state-owned institution. And a bank. The accounting is special for banks (and mostly beyond me). Some say, it's doubly "special" for companies like ICBC. For Vodafone, that number was a special one time gain from the sale of Verizon Wireless. In 2014, they showed an operating loss of £3.9B (but a overall gain of £11B because of income tax credits -- hoorah for financial engineering?)
  - scarface74 6y ago
    Revenue or profit?
- lotsofpulp 6y ago
  These types of ludicrous comparisons serve no purpose. The sum total of an arbitrarily chosen currency with an arbitrary size or weight has nothing to do with anything. If "normal people" want to understand something, they should read the 10-K and search online for terms they don't understand. It is pretty simple to understand how much revenue and net income per customer has been and is expected in the future per some unit of time.
Sargos 6y ago
The cantillon effect from the Fed money printing did most of the work.
Applejinx 6y ago
Market cap is not value. Market cap is opinion. Hence, Apple.
em500 6y ago
I don't think they did, but that's up to the buyers of AAPL shares to assess. I bought a house five years ago that is now valued $300k more. Did I (or anyone else) create $300k of value to "justify" the increased valuation? I don't think so. It's simply what people are willing to pay in the current market.
paxys 6y ago
The stock market is a lot more about gambling than an objective measure of value.

mpweiher 6y ago

P/E ratio has been pretty consistent and reasonable in the 30s.

samfisher83 6y ago
Its P/E ratio was about 18 year ago. It has pretty much doubled in the last year.

rmah 6y ago

Apple made apx $115B in net income over that two year period and paid out around $30B in dividends. So... yeah. In case you're wondering how much $115B is in terms normal people can understand... if that was in $100 paper notes... - Stacked up on top of each other, it would reach 12,000 km high (the ISS orbits at about 400km) - The notes would weigh around 1,150 tons - To ship them, you'd need over 1000 4'x4' shipping pallets, each weighing a ton $115 billion is an absurdly huge amount of profits

dis-sys 6y ago
The answer is not convincing - with a comparable net income level, the world's largest bank ICBC only has 1/7 of apple's market cap. Vodafone had over 100 billion earnings back in 2014, that was like two years of apple earnings in 12 months, Vodafone never had a 24,000km high market cap built with $100 notes.
- rmah 6y ago
  For ICBC, it's a state-owned institution. And a bank. The accounting is special for banks (and mostly beyond me). Some say, it's doubly "special" for companies like ICBC. For Vodafone, that number was a special one time gain from the sale of Verizon Wireless. In 2014, they showed an operating loss of £3.9B (but a overall gain of £11B because of income tax credits -- hoorah for financial engineering?)
- scarface74 6y ago
  Revenue or profit?
lotsofpulp 6y ago
These types of ludicrous comparisons serve no purpose. The sum total of an arbitrarily chosen currency with an arbitrary size or weight has nothing to do with anything. If "normal people" want to understand something, they should read the 10-K and search online for terms they don't understand. It is pretty simple to understand how much revenue and net income per customer has been and is expected in the future per some unit of time.

Sargos 6y ago

The cantillon effect from the Fed money printing did most of the work.

Applejinx 6y ago

Market cap is not value. Market cap is opinion. Hence, Apple.

em500 6y ago

I don't think they did, but that's up to the buyers of AAPL shares to assess. I bought a house five years ago that is now valued $300k more. Did I (or anyone else) create $300k of value to "justify" the increased valuation? I don't think so. It's simply what people are willing to pay in the current market.

paxys 6y ago

The stock market is a lot more about gambling than an objective measure of value.