Alphabet overtakes Apple as the world's most valuable company based on enterprise value

Alphabet overtakes Apple as the world's most valuable company based on enterprise value
On August 11th, 2001 we told you that based on market capitalization (stock price multiplied by shares outstanding), Apple had become the world's most valuable company surpassing Exxon-Mobil at the top. By early 2013, Apple's shares had dropped nearly 40% after peaking on the launch date for the Apple iPhone 5. Exxon-Mobil briefly took over at the top once more. But the tech titan soon regained the title as the world's most valuable company.

However, the combination of a weak stock market and forecasts from some analysts that Apple will soon report its first year-over-year decline in iPhone sales, has some investors running for the exit. While Apple still is ranked number one based on its $535 billion market cap, it has fallen to number two when using enterprise value. This involves adding debt and subtracting cash, and provides a more accurate look at the value of a company's business.

Apple's enterprise value of $393 billion has the company second to the $420 billion enterprise value of Alphabet. Yes, that is the holding company that owns Google. In computing its enterprise value, Apple is being penalized for its large holdings of cash.

While 43 analysts on Wall Street are still posting a target of $143, one by the name of Adnaan Ahmad has a target of $85 for the stock. He sees similarities between what Apple is going through and what happened to former smartphone powers Nokia and BlackBerry. In case you want to write off Ahmad as a lone nut, consider that with Apple currently trading at $99, the stock is a lot closer to his target than it is to the rest of the Wall Streeters that follow the company.


Apple's stock fluctuations affect Main Street just as much as it does Wall Street. Most mutual funds are loaded with the shares which means that you could be the world's number one Apple hater, but still have to rely on the company's success to have a prosperous retirement.

source: FinancialTimes

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72 Comments

74. obedchuni

Posts: 341; Member since: Jun 16, 2014

I think son of samsung, techieXP must be very happy ha ha

88. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Why would I be. I don't dislike Apple. I dislike the company they have become. The problem with Apple is they rushed to beat everyone in the direction everyone was already headed. It has already been proven Apple did not come up with the idea of a minimalistic device dsign. Others were heading that way, Apple did it first on a mass market. Problem? The iPhone and iPad has not changed since day one. Yes it's gotten bigger physicslly, but it doesn't do all that much more. Compare Android and how it has changed, especially with each oem providing their own twist. Consider that Android as a whole has just as much development support as iOS. The devs for Android just won't support a single manufacturers features like even though Samsung has better features on their phknes, developers don't support them like they should. Something Apple does get with them. Apple is just evolving their products but haven't offered anything no one else wasn't going to do. They simply rush to be first so the media can help them make false claims that because Apple did it first they popularized it which is false. As far as market, I don't care about the value of any company. Apple didn't do anything with that value that was ever valuable. Google has actually made good useful ideas that benefit masses. Tim Cook inyong cares about what the board wants, not what their customers want. They blew the big phone idea for years. They only went big because they had no choice. Bashing the Surface Pro by Cook was ignorant. An x86 iPad that could dual boot Windows would be a awesome device even if I didn't buy it. The Surface is awesome and it is a PC and you can boot Linux if you want too. iPod Touch was once considered the best mobile device for games, then sales dropped. The iPad was the best tablet since day one, still is in sales, bit it is dropping. The iPhone is still the best selling single model, but it no longer offers anything to look forward too. Especially with other oems who offer a new model every year while Apple uses the same model 2 years in a row. One new feature every model, lame resolutions, no awesome features, poorly implemented features like force touch. A watch that does less than Samsung a first Gear model from 2 years ago and in 2 years Samsung released several models for different people with the S2 being the best ever and Apple can't even get one right. It seems wit no Jobs, Apple has no idea. The iPad Pro, doesn't even come with a pen and then the way you have to charge it is even moreasier stupid. Botched ideas like the sapphire glass, iPhone 4 antenna issues, bending iPhone 6 Plus, every iPhone has had connection issues, ios7,88 and 9 all.hall.havimg serious bug issues and breaking older phones, laggy up and more. The trouble has already started and it was all avoidable. But why would I be happy?

73. ZeeNasir

Posts: 131; Member since: Nov 25, 2012

Apple is declining. No macs, ipads but just relying on iphone. If no improvement then Apple will soon sit with nokia and bb.

66. ibend

Posts: 6747; Member since: Sep 30, 2014

Apple goes downhill, starting now..

55. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

Adnaan Ahmad is to be believed after being fired from his job a few weeks ago for being so consistently wrong and bearish on Apple for years? Okay, makes total sense.

49. Baracus

Posts: 223; Member since: Sep 15, 2012

If Apple disappeared tomorrow all you'd get is some people a bit grumpy that they won't be getting a new iPhone but they'll just move on with their lives because in the grand scheme Apple means nothing. But if Google and Android went there would be huge problems all over the world and would take a lot to recover. So when Apple fanboys start going on about money and quality they need to realise their allegiances are superficial and meaningless.

45. Ilikkaman

Posts: 39; Member since: Dec 29, 2015

Apple sucks. plain and simple. when the peeps realize this it will be a better world.

44. pureviewuser

Posts: 501; Member since: Nov 11, 2012

I'm definitely not an Apple or Google fan I'm all Microsoft but having said that I wish those two well and to prosper.

43. darkkjedii

Posts: 31805; Member since: Feb 05, 2011

Penalized for its cash holdings? Damn, cash is king. The iPhone 7 is coming though, it should shake things up a bit.

83. Furbal unregistered

Cash doesn't equate to long term growth though. Hopefully the 7 brings something different

22. Tizo101

Posts: 644; Member since: Jun 05, 2015

The way I see it, Apple still have a decade plus on the market while on a decline - although a decline like that is at the moment impossible.

18. AkoSiKuting

Posts: 88; Member since: Dec 09, 2015

Doesn't matter, Apple rocks, deal with it :)

21. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

Just in the way which Nokia rocked in the past, but gone now.

29. MANOFSTEEL

Posts: 127; Member since: Nov 25, 2015

Android is Ratchet and that's a fact

34. Scott93274

Posts: 6044; Member since: Aug 06, 2013

Your slang is idiotic, and that's a fact.

24. tedkord

Posts: 17529; Member since: Jun 17, 2009

Yep. Number two isn't bad.

35. PHYCLOPSH

Posts: 657; Member since: Jun 28, 2014

True, but in a competitive league second place is synonymous with first loser.

40. hwb01

Posts: 355; Member since: Apr 17, 2014

-Ricky Bobby

10. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

Adnaan Ahmad: I am writing him off as a lone nut if he thinks Apple mobile is going to end up like Nokia or BB. Apple produces the only ios smartphone, it will not end up like Nokia anytime soon if ever.

13. TerryTerius unregistered

He didn't say that Apple would end up as Nokia or BlackBerry. He said that what Apple is going through is similar to what they went through.

36. Scott93274

Posts: 6044; Member since: Aug 06, 2013

The only thing constant in life is change. Anyone who says otherwise is just fooling themselves. Apple is not immune to making bad decisions, and they are more than capable of inadvertent self destruction.

53. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

I Know That LOL.

60. TerryTerius unregistered

People seem to forget that Apple has already gone through various swings thorough the spectrum of success.

64. ibend

Posts: 6747; Member since: Sep 30, 2014

thats when steve still there... he's gone now

67. Scott93274

Posts: 6044; Member since: Aug 06, 2013

The biggest swing they had was when they fired him from his own company then brought him back in the mid 90's.... no chance of that happening again.

80. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

"no chance of that happening again." We can rebuild him. We have the technology. We can make him better than he was. Better, stronger, faster. He is the 200 billion dollar man.

85. Scott93274

Posts: 6044; Member since: Aug 06, 2013

Thanks for the laugh. :)

65. ibend

Posts: 6747; Member since: Sep 30, 2014

apple will be HTC-ed..

8. kraj.snps

Posts: 12; Member since: Jul 31, 2012

Why is the writer so hurt with this news? Calling the analyst "lone nut", "world's number one apple hatter"... what? Come on people... you are a phone news company... have some self control and be impartial

12. TerryTerius unregistered

You seem to have misread what was stated. The author said "in case you want to write him off as a lone nut" consider his projections are closer to Apple's current stock value versus what Wall Street is projecting. In other words, he said the dude may be right and it would be folly to assume that Apple's stock price cannot fall. In what way is that bias? That's just factually correct. And he said that even if you are an Apple hater, a lot of people's mutual funds are tied up in Apple stock. So even if you personally dislike the company, you may have a stake in how well they do. Which is also true. You seem to have just skimmed through and read what you wanted to read, versus what was actually written.

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