briefly topped $600 billion. Mister Softy, which is what traders call the company because of its stock symbol (MSFT), is now a $267 billion company. In early 2000, Cisco, Intel and GE each hit the $500 billion club in early 2000. Today, the trio are worth $100 billion, $100 billion, and $200 bilion respectively. Apple is currently sitting on a cash pile of $98 billion and as we recently told you, its value makes up 3.7% of the S&P 500 index
While most of the rise in value for the other companies was due to strength in a particular sector, like oil and gas for Exxon and technology for Cisco and Intel, Apple's rise is based on its strong growth in revenue and profits from a small number of extremely popular devices. To show how strong Apple has been growing, consider that despite its sky-high market cap, the stock is trading at only 15 times earnings. For comparison, another high priced tech stock, Google, trades at 21 times earnings. It is not unusual for an overvalued stock to trade at 50-75 times earnings or more. Some fundamental analysts argue that with a P/E of 15, Apple's current value is deserved and that it is a far way from being overvalued. 35 analysts following the stock have an average target of $592, which is 8% higher from current levels and implies a market cap of $552 billion.