Apple valued at $600bn for first time

Apple, already the world’s most valuable company, has reached the $600bn level for the first time.

Only one other company has been worth that much — Microsoft. The electronics giant reached that valuation for 13 trading days around the turn of the millennium at the peak of the technology stock mania.

At its highest level, on Dec 30, 1999, Microsoft’s valuation was $619bn. It is now worth $260bn.

General Electric fell just short of reaching a $600bn valuation in Aug 2000.

Apple shares hit $644 in morning trading, up 1.2% from Monday’s close, before slipping back to $628.

Apple’s stock is up 59% since the start of the year, an indication that investors are catching up to what analysts have been saying: despite its enormous market capitalisation, Apple’s stock has been undervalued relative to its even more enormous profits.

The rally has also been fuelled by the report of another blow-out holiday quarter, and the announcement that Apple will start putting its $97.6bn cash hoard to use this summer by paying a dividend and buying back shares.

Apple’s market capitalisation hit $500bn on Feb 29. That in itself was a rare achievement: only five other US companies have ever been worth that much.

Apple’s market capitalisation is still 41% below Microsoft’s 1999 record if inflation is taken into account, with the $619bn then becoming $846bn dollars.

Many analysts think Apple can get there. Last week, Brian White of Topeka Capital Markets was the first to set a stock price target of more than $800, with a goal of $1,001. That target implies a market capitalisation of $932bn.

Mr White believes Apple will expand its reach this year by starting to sell the iPhone through China Mobile, that country’s largest phone company, and by launching a TV set. Apple has not confirmed either piece of speculation.

China’s largest oil company, PetroChina, was briefly worth $1 trillion after it listed on the Shanghai stock exchange in 2007, but only based on its price on that exchange.