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

More Videos

Invest and earn with Coinbloc .us. Guaranteed Weekly ROI, early signals, fast withdrawals among others. I recommend Coinbloc .us as on...

Hans Jensen

Explainer: What marketers need to know about cryptocurrency

Read more

Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...

Dave Sigurd

Gartner: Digital isn't enough of a superpower for CMOs anymore

Read more

I normally don’t feel comfortable investing online but because the company I worked for downsized due to the pandemic and I was one of th...

Dave Sigurd

CMO's top 8 martech stories for the week - 9 June 2022

Read more

Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...

Dave Sigurd

Creating a marketplace for wellness

Read more

A solution for an retail industry data extraction. https://e-scraper.com/usefu...

"e-Scraper" Data Extracting

​Catchoftheday launches fee-based online shopping club

Read more

Blog Posts

2 hidden ingredients for leadership success CMOs need to know

Your success as a senior marketing professional has much in common with your success as a leader. Both marketing, and leadership activities, depend on building trust, encouraging action, and reliably fulfilling promises that have been made.

Gerard Penna

Leadership advisor, coach

How shifting economic trends are impacting digital media

Between further interest rate rises, inflation​, empty shelves, extortionate lettuce prices, supply chain issues and the barely believable events in Eastern Europe, the past six months there’s been a cacophony of environmental factors.

Kieran Reed

Senior digital manager, Alpha Digital

5 ways to turn imposter syndrome into confidence and conviction

Imposter syndrome. That feeling others will discover you are actually not as good as they expect, and at any point you will be exposed and ridiculed as a fraud. If you can relate to this, then you are not alone.

Rowena Millward

Author, consultant

Sign in