Is Apple The Most Valuable Company In History?
On 10th December, Apple Inc. became the first American company in the history to have a gross market capital of $700 billion. As documented, each share of Apple Inc. in NASDAQ cost $124 making the total worth of Apple, $722 billion. This also shows the increase of 64% over just 12 months. Now, the question arises that is Apple the most valuable company of all time?
There’s always a question is mind that what is total ‘market cap’ and how it is calculated? According to Celebrity Net Worth, market capitalization is calculated by the company’s stock pride and the total number of outstanding share in the market. Suppose for a company whose initial value of one share is $100. It launches its IPO in a public investor exchange of 3 million shares. This means the market capital of that company will be $300 million.
Apple has 5.825 billion outstanding shares. On multiplying with $124, it becomes $722.3 billion. This makes its market value approx. two time the #2 company of U.S.A i.e. Exxon Mobil. The market capital of Exxon Mobil is $381 billion.
When Steve Jobs, the founder of Apple Inc., resigned from the company in 2011, it was presumed that the company will not survive in his absence. It was the time when a relatively unknown face, Tim Cook came up as the executive of the company. Today, the market cap of Apple in $722 billion which is more than double when Tim took over as the CEO and tree-times more valuable than it was four years ago.
In a similar article published on Reuters, “It wouldn’t be outlandish for them to be at a $1 trillion market cap now,” said Mark Mulholland, a portfolio manager whose Matthew 25 fund is among the best performing large cap funds over last five years.
Most Valuable Companies of All Time
On November 5, 2007, a company called Petrochina launched its IPO in the Shanghai Stock Exchange. At its debut, the company had a market cap of $350 million. At the end of its first day of trading, the price roughly tripled, giving Petrochina a market cap of $1 trillion which is about $1.137 trillion today after adjusting the inflations.
No matter how successful these companies like Apple, Microsoft or Petrochina may be, they are still dwarfs in front of the most valuable company of the World History. This title belong to The Dutch East India Company. This company worth was a colossal $7.4 trillion. It was the first multinational company having 150 ships for trade, 40 warships, a private army of 10,000 soldiers and 50,000 employees. In the 1600s, at its peak, the company’s worth was 78 million Dutch Guilders whose values today in modern dollars and inflation adjustment is $7.4 trillion.