Now Reading: Rs 8.5 lakh Apple bet 10 years ago would be worth Rs 1.07 crore today
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Rs 8.5 lakh Apple bet 10 years ago would be worth Rs 1.07 crore today
Rs 8.5 lakh Apple bet 10 years ago would be worth Rs 1.07 crore today
A $10,000 (Rs 8.5 lakh) investment in Apple stock made in August 2016 would be worth about $126,000 (Rs 1.07 crore) today, according to The Motley Fool. Apple shares traded at around…
The Story in Brief
A $10,000 (Rs 8.5 lakh) investment in Apple stock made in August 2016 would be worth about $126,000 (Rs 1.07 crore) today, according to The Motley Fool. Apple shares traded at around $27 in August 2016, adjusted for its 2020 stock split, and now trade at about $311, an 11.5-fold increase. Reinvested dividends pushed the total return slightly higher.
The outsized return was driven by a roughly fourfold increase in Apple's earnings per share to $8.72 and a near-tripling of its price-to-earnings multiple from 13 to 36. Apple's share count also shrank from nearly 22 billion to 14.6 billion via buybacks. The Motley Fool cautions that another tripling of the P/E multiple is unrealistic, so future returns will depend on business growth rather than valuation expansion.
The Indian Opinion
The Motley Fool frames Apple's decadal return as a triumph of earnings growth and multiple expansion, but the arithmetic carries a warning. A P/E ratio that nearly tripled to 36 cannot triple again without pricing in absurdity. The lazy narrative, stocks just go up, ignores that Apple's market cap now exceeds the GDP of most nations. Future gains depend on hardware upgrades tied to AI, a bet that is far from assured. The question is not whether Apple can innovate, but whether its valuation can justify the next leap without a reckoning.
Source: hindustantimes.com
This story was synthesised by AI from the source linked above.
