How much is Apple Inc. worth?

Posted:
in General Discussion edited January 2014
I was thinking, how much is Appel inc. actually worth if you would buy the company.



Is the market capitalization the same number as the value of the company?



Right now Apple inc. has around 70 million stocks which are worth 90$ each. So you could then buy entire Apple for $ 6.3 billion, or how does this work?



Let's just compare to Skype which was sold to Ebay for 2.6 billion. I mean Apple inc. must be worth ALOT more than Skype. Apple just made a profit of 1 billion in a quarter .



Sorry for my newb stockowners questions. Maybe some of you could shed some light on this?

Comments

  • Reply 1 of 3
    chuckerchucker Posts: 5,089member
    Quote:
    Originally Posted by xyz001 View Post


    Is the market capitalization the same number as the value of the company?



    Well, you'll typically want to offer a sizeable chunk more than the market cap. Keep in mind that, buy attempting to buy, you drive the stock price up a lot, and therefore the market cap as well.



    Quote:

    Right now Apple inc. has around 70 million stocks which are worth 90$ each. So you could then buy entire Apple for $ 6.3 billion, or how does this work?



    Actually, according to Yahoo! Finance, there are currently 859.27 million shares outstanding, and AAPL's current market cap is 76.54 billion.



    Instead of that, you'll likely want to offer at least 85 billion, if not significantly more.
  • Reply 2 of 3
    xyz001xyz001 Posts: 117member
    Quote:
    Originally Posted by Chucker View Post


    Actually, according to Yahoo! Finance, there are currently 859.27 million shares outstanding, and AAPL's current market cap is 76.54 billion.



    Ahh, Ithink i missread the numbers 10 times as low. This makes more sense.



    So can you judge if a company is underated or overrated by looking at the market cap, and comparing it to what other companies are being sold for?
  • Reply 3 of 3
    chuckerchucker Posts: 5,089member
    Quote:
    Originally Posted by xyz001 View Post


    So can you judge if a company is underated or overrated by looking at the market cap, and comparing it to what other companies are being sold for?



    Not really. There is no universal way of determining whether stock is overvalued or undervalued. All you can really do is compare a company to its competitors and look at how compelling each one's future is.
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