Apple outranks Google as most valuable global brand
Apple has ended a four-year reign by Google as the most valuable brand in the world according to results from the BrandZ Top 100 Valuable Global Brands study released today.
The announcement:
May 9, 2011 –
Registering a staggering 84 percent increase in value over the past year, Apple has emerged as the most valuable brand in the world, ending the four-year reign of Google at the top of the table in the sixth annual BrandZ Top 100 Most Valuable Global Brands study.
Apple’s rise and rise may seem overblown to some. But I think it should clearly be at the top of any list going.
Apple’s share price may seem high as a kite, but it actually should be flying much much higher. It is undervalued. And I can assure you it will keep growing at these and even higher rates. And I can explain why.
Apple’s share price has been trading at a P/E of 16.3. Excluding cash that ratio was at 13. On a conservative forward basis (my estimates) the stock is priced at less than 10 times next twelve months’ earnings. Many other in favour share prices are traded at up to 30 times earnings.
These figures show a remarkable pessimism that has persisted around Apple for years. It persisted when Apple was growing at 30% of, as now, 95% annually.
Why is Apple so undervalued when we know the ever more connected universe is just starting to become Apple devotees (note the growth path in China alone).
Some say that number two on the list Google and it’s Android has been the key factor in the Apple stock being undervalued.
Lately it’s become fashionable to credit Android with overtaking Apple’s IOS. But Apple has not “lost sales” to Android as it has been selling all it can produce.
Since Apple is trading at a fraction of it’s historic multiple, it’s multiple based on growth, and comparable companies’ multiples then we can assume that a “normal” valuation should be twice the current (i.e. a multiple of about 32).
But a multiple of 32 would imply a doubling of its Market Cap, so Apple should be valued at $600 Billion US.
And if the Android factor is indeed the factor that is stopping Apple being valued fairly the solution could be simple. Since Google (Android’s owner) itself is only worth about $169 billion. Apple could buy Google (it already has a third of its value in cash) and it shut down Android, and it would create $300 billion in extra value.
It could even throw away all of Google and still walk out with a profit.
Just an idea.
Paul G Roberts
Author of the Book and part of his Trilogy
NOW A Business Survival Guide (on sale everywhere)
https://www.youtube.com/watch?v=GhkqjyCNgoE
I have to disagree.
I predict Apples share price will reduce by 25% over the next 3 years.
Tablets / Phones and Listening devices will be dissolved with Apple no longer owning that market.
People are annoyed with Itunes; people like freedom.
Trigger,
Do u believe the Moon is made of cheese as well?
Do u have any factual insights that u can share on your reckoning?
You want to put up a bet, that you’re right and I’m not?
Im up for it.
Paul G Roberts
Why Apple is sure to be the world’s first Trillion Dollar company
Regardless of whether Steve Jobs lives and works to a ripe old age Apple’s destiny is pre-ordained. Moore’s Law, and now the laws of the digital revolution guarantee that the power of processing, storage, cost per computing dollar is only accelerating. That means that Apple will keep making revolutionary products that keep transforming our connected lives. Not only will more and more people become a devoted part of the Apple eco-system, they will continually upgrade their devices and products. Apple’s stellar growth will only get faster.
Apple’s year on year growth is going to grow in a compound fashion.
2011 $320 Billion
2013 $600 Billion
2014 $1.2 Trillion
And that estimate has been discounted for a looming USA currency collapse.
CONSIDER THE RECENT STATS
92% growth in profit year-over-year
Profits are now bigger than Microsoft and building
Company is currently worth $320 billion but based on fair market evaluation should be much twice as much and maybe more.
iPad was not even around a year ago
20 million iPads sold since then and only now people are realising that it like the iPhone is a game changer
iPad2 has undersold because of supply constraints
iPad has not cannibalized Mac sales
7 successsive Quarter increase of Mac computer sales and still under 10% market share (i.e. lots of room to grow)
iPhone has only 5% of market share (all handsets)
China, Brazil and India are guaranteed huge growth markets for Apple
Why is the stock so cheap? What are investors missing?
Investors are worried about Steve Jobs’ health
The illusory Android threat factor
But in reality the biggest problem Apple has is inventory and supply chain management problems, not innovation, Apple cannot supply its products fast enough to meet demand
But be assured that Tim Cook, who has the operations expertise to manage inventory and supply chain management, will be CEO if anything happens to Steve Jobs
So if you want to buy a stock that is set to pass the $1,000 mark and keep climbing, you know what it is.
Paul G Roberts
Author of the Trilogy including (plug) “NEXT An Armchair Guide to Your Future”
https://www.youtube.com/watch?v=WLY50LNU3Qo
Available in bookstores everywhere and on the App Store