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
This year’s Cannes Lions program is packed full of data, robots, algorithms, voice technology, blockchain, virtual reality, artificial intelligence and machine creativity. But I’m just as interested in more subtle trends and insights.
Customer experience is eclipsing product as a competitive differentiator. CMOs are recognising this shift and talking the talk. But are they also walking the walk?
Much of the talk in the industry is focused on the limited amount of time that screens have left in our lives.
In this bonus last episode of this new podcast series, BrandHook MD, Pip Stocks, talks with former ANZ group general manager of marketing, Louise Eyres, talks about the importance of thinking like a customer and using intuition to solve customer painpoints.
You're suggesting that Taylor Swift is a non-brand because we don't know who she votes for, and then you suggest developing brand stories...
Brian 't Hart
Why Gartner thinks brands are too uptight about strategy
Indeed this is the great article but i will love to recommend you to read the case study of Walamrt for get the more and more customers. ...
Eva Buttler
5 steps to customer intelligence success
here is the good news now you can find the all adobe products at walmart .. read this news here at https://creditcardsfair.com/
Yasir Abbas
Adobe: Tech architecture, talent stopping companies making the experience shift
Google is more like a utility. Does a road have a brand? No. Do we use it daily? Of course! And the idea of Taylor Swift as an unbrand be...
Davy Adams
Why Gartner thinks brands are too uptight about strategy
My father had ALS (amyotrophic lateral sclerosis) for 3 years His first symptoms were weakness in his hands and losing his balance which ...
Janice Tollis
Why Gartner thinks brands are too uptight about strategy