Here Is Apple’s True Valuation

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Is Apple’s (NASDAQ:AAPL) current valuation the result of irrational market forces? Apple Insider’s Daniel Eran Dilger recently took a close look at the history of Apple’s valuation over the past five years in order to determine the causes behind the successful tech company’s wildly varying share price.

Apple’s market capitalization recently crossed the $500 billion threshold when the share price set a new high for the year at $556.07 on Friday. The previous high for 2013 was set on January 2 when the stock hit $549.03.

However, despite the recent share price boost, Dilger noted that Apple’s current valuation is approximately the same as it was in the spring of 2012. At that time, several prominent analysts had set $1,000-plus price targets on Apple’s shares, including Gene Munster of Piper Jaffray and Brian White of Topeka Capital Markets (now with Cantor Fitzgerald). Dilger noted that if Apple’s share price had reached the predicted $1,000 level by the end of 2012, the company would have had a valuation of around $1 trillion.

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