Apple reported a net revenue of $57.4 billion in its final fiscal year ended September 2020.
Gene Munster, a veteran Wall Street analyst who had rightly predicted Apple’s run to $2 trillion market place cap back in January 2020, believes that the Steve Jobs’ business has a path to $3 trillion as nicely. Munster had covered Apple for a extended time as an analyst at the investment bank Piper Jaffray. He told CNBC not too long ago that the iPhone maker can realistically attain $200 per share. This would push Apple’s market place cap beyond $3 trillion from the existing $2.22 trillion market place cap with its stock trading about $132 per share on Friday. Apple became the 1st publicly traded US firm to hit the $2 trillion market place cap in August 2020.
Munster, who later co-founded venture capital firm Loup Ventures, mentioned that his belief was primarily based on Apple trading at a cost-to-earnings ratio, or a number of, of 35 for 2022 earnings estimates. The Price-to-earnings ratio refers to the dollar quantity an investor can appear at to invest in a firm in order to get a single dollar of that company’s earnings. In a way, it indicates how substantially an investor may possibly spend per dollar of earnings and therefore is referred to as the cost a number of. “It’s a year out there but I’m fast-forwarding the conversation to the middle and back half of next year, and we’ll be talking about 2022 at that point. If the market can sustain these 35 multiples — you know, we’re not talking about an Amazon-like multiple here — I think that that path is there,” he added.
Also study: SoftBank’s 6 mega IPO bets in 2021 that may possibly make Masayoshi Son demi-god for technology startups
Apple’s existing cost-to-earnings ratio is 40.51 soon after its stock soared about 81 per cent in 2020. Generally, Munster believed that Apple will additional see a powerful stock overall performance in the new year especially when compared with its FAANG providers such as Facebook, Amazon, Netflix, and Alphabet that owns Google. “I think for 2021, the performance is going to come again from Apple. It may seem tone deaf for a company to lead FAANG for three straight years, but I think that in fact will happen. I think this has a track to $200 (per share).” Apple reported a net revenue of $57.4 billion in its final fiscal year ended September 2020.