Without doubt, Apple (NASDAQ: AAPL) is the most successful company in modern financial history. Today, its market valuation, revenues, cash flow, and earnings are among the highest of any company ever. What’s more, owners of Apple stock have made more money in total than any other group of shareholders in history. So here are five fantastic and fascinating facts about the world’s biggest Big Tech company.
1. Apple stock was briefly worth $3trn
Exactly a week ago, on 4 January, Apple stock soared to an all-time record. At its intra-day high, the Apple share price peaked at $182.94, before easing back to close at $179.70. At its peak, Apple’s market value exceeded $3trn. This made it the world’s first company to reach this jaw-dropping valuation. However, Apple’s stock price has since retreated and stands at $171.25 as I write. This values the consumer-electronic Goliath at $2.8trn, which still makes it the #1 corporation worldwide by market value. Mind-blowing, huh?
2. AAPL is worth more than the German stock market
It took Apple more than four decades to become a $1trn company, hitting this mark in August 2018. With two years, on 19 August 2020, it first reached a $2trn valuation. Earlier this month, it first hit hit the $3trn mark. Even after losing $200bn of market value in a week, Apple at $2.8trn is worth slightly more than the entire German stock market. The total value of all German-listed companies is around $2.4trn, which Apple’s value exceeds by roughly $400bn. Wow.
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3. $1,000 in Apple stock five years ago is now worth nearly $6,000
Five years ago, on 13 January 2017, the Apple stock price closed at $29.76. Today, at $171.25, it is over 5.75 times as much. In fact, had I invested $1,000 in Apple stock five years ago, I would have over $5,754 today. That’s a market-thrashing return of 475.4% in five years — and this ignores all cash dividends paid by Apple to shareholders since January 2017. Crikey.
4. Apple took under 16 months to add $1trn in market value
It took Apple 42 years to reach a $1trn market value and two years for this to double. Remarkably, despite the ongoing Covid-19 global pandemic, it took Apple stock less than 16 months to add another $1trn to its already-towering valuation. Clearly, the old City of London saying that “elephants don’t gallop” doesn’t applied to Apple — at least so far. Crazy.
5. Apple’s earnings multiple has almost quadrupled in five years
Now for a slightly frightening fundamental figure from Apple. As a consumer-goods powerhouse, Apple’s fundamental ratings have soared in recent years. Five years ago, the ratio of Apple’s enterprise value (market value plus net debt) to revenues was a healthy two times. Today, this valuation measure has almost quadrupled to nearly eight times revenues. Also, Apple’s price-to-earnings ratio now exceeds 30 times, compared to roughly 10 times five years ago. In other words, Apple’s revenues and earnings have never been as highly valued as they are in 2022. Ooh.
I would not buy Apple stock today
Finally, I don’t own Apple stock, but would I buy AAPL at its current lofty valuation? I would hate to bet against the world’s most successful company, but I expect stock markets to have a weak 2022. Hence, I’d rather look for value among lowly rated FTSE 100 stocks paying juicy dividends. I would rather bet on value than backing go-go growth stocks as global interest rates creep up!
