Tuesday, August 21, 2012

Apple becomes the biggest company $623 billion

Apple largest firm in the world $623 billion, Iphone 5, microsoftApple just became the largest company in the world by market value with $623 billion, as the shares rised to a new peak at $665.15.

Apple's share got back the attention from investors after having slightly dropped following the release of the last quarter sales result which disappointed Wall street's analysts, it shows once again the overreaction from the markets toward analysts previsions, but it has now gained back their confidence as the firm will probably launch the iPhone 5 and a mini iPad before the end of the year

Apple Corp,. just set a new record as the most valuable company in the world, beating the record holded by Microsoft Corp. which was at $620.58 billion in 1999, but if we take inflation into account the value of Microsoft at that time would be around $850 billion in today's dollar according to financial analysts and CFA holders.

Is Apple's share overvalued?

According to analysts, Apple is very likely to rise up to $750 which is the target average price of 20 financial analyst, moreover the average price-earning ratio from technology industry is 16.1 whereas Apple has a price earning of 15.1 which allows it some room to grow. The released of the iPhone 5 this year and the new features that will come will be an important factor in the future performance of the stock.

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