Google takes Apple's title as world's most valuable tech company (by one metric)

Google's 'enterprise value' surpasses Apple's by $8bn, analyst claims

Google, and not Apple, is now the world's most valuable technology company - if you use the less common 'enterprise value' rather than market capitalisation.

Google, and not Apple, is now the world's most valuable technology company. That's according to a financial pundit who has calculated Apple and Google's respective worths using the less common 'enterprise value' rather than market capitalisation, which still puts Apple top.

Moneybeat's Rolfe Winkler made the call in an article on Tuesday, in which he wrote that while the market capitalisations of the companies remain tilted in Apple's favour (Apple has a market cap of US$378bn while Google is barely worth notice on a mere $286bn), the enterprise values - calculated by removing each firm's cash holdings - puts Google ahead.

"The market [capitalisations] of both companies are swelled by their huge bank accounts," Winkler argues. "Strip out Apple's $145 billion of net cash as of March, and Google's $45 billion. This leaves an enterprise value of $233 billion for Apple, but $241 billion for Google, reflecting the underlying value of the companies' actual operations."

In essence this alternative metric is designed to measure the companies' activity rather than their static worth; the value of their operations rather than their bank accounts. Winkler tries to explain the choice of measurement with an analogy:

"Another way to think about it: If you bought a house for $378,000, but there was $145,000 of cash lying on the living room floor, all you really paid was a net $233,000."

But we're not sure that's terribly helpful for the financially illiterate like us.

As Winkler also notes, Apple recently lost its overall title as world's most valuable company in any field to the oil giant Exxon Mobil. It's been a difficult year for Apple in terms of share price, even though its actual performance has remained strong; some pundits have pointed to the relative lack of big product announcements this year, although big things are expected in autumn.

Related:

What's happening to Apple's share price?

Apple stock manipulation: rogue AAPL trader pleads guilty, may face 25 years in prison

Did stock manipulation cause Apple stock to close at $500?

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

The best part: optimizing your site for SEO enables you to generate high traffic, and hence free B2B lead generation. This is done throug...

Sergiu Alexei

The top 6 content challenges facing B2B firms

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

NetSuite started out as a cloud-based provider of Enterprise Resource Planning software or as NetSuite solution provider, which companies...

talalyousaf

NetSuite to acquire Bronto's digital marketing platform for US$200m

Read more

Thanks for sharing this post, its really good information I get through this blog.CDPO Online Exam Training

Infosectrain01

3 ways Booking.com is improving its B2B marketing game

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in