Apple’s Value Up $90 Billion Since Steve Jobs’ Passing as Stock Hits New All-Time Highs
Apple’s (NASDAQ:AAPL) shares are presently up approximately $90 billion since Apple co-founder and CEO Steve Jobs passed away on October 5.
On October 4, Apple shares had a market capitalization of $347 billion, closing at $372.50 per share. Now, a little over four months later, the stock has gained approximately $100 per share and the market cap has grown by $90 billion to around $437 Billion. To place those numbers in perspective, many analysts are valuing Facebook at around $100 billion (though there are some who believe it is being significantly overvalued).
However, accepting that Facebook is worth $100 billion, its P/E would be 100x trailing earnings and 27x trailing revenues, according to Erik Savitz in Forbes. Apple fares far better and seems much more stable, trading at 3.4x trailing revenues and 13x trailing profits. If you remove from the equation the $100 billion in cash the company has on hand, the valuation decreases to 2.6x revenues and 10x earnings. It’s possible that Apple may become even more constricted, as some analysts predict the stock might soon experience a sell-off.
The cause of Apple’s increased value was due to sales numbers, largely for the iPhone 4S, that shattered expectations last month. The launching of the iPhone 4S was announced the day before Jobs’ death, and many people have linked its initially positive sales, at least in part, to the increased publicity around his death, especially among tech savvy consumers.
Here’s how Apple shares are trading now:
Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $472.46, up $3.63, or 0.77%. They have traded in a 52-week range of $310.50 to $469.75. Volume today was 5,613,074 shares versus a 3-month average volume of 12,422,700 shares. The company’s trailing P/E is 13.43, while trailing earnings are $35.14 per share.
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