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Apple to become a trillion dollar company

Analyst Brian White believes Apple will be the first company in history to be valued at one trillion dollars due to upcoming iPhone

This September, Apple is set to launch its premium iPhone 8 and later in the year the Apple Home Pod.
This September, Apple is set to launch its premium iPhone 8 and later in the year the Apple Home Pod.

Apple will be the first company to be valued at one trillion dollars after the release of the upcoming iPhone 8, according to an analyst from Drexel Hamilton.

Apple is currently valued at $752bn, but analyst Brian White believes that as this year marks Apple's 10th anniversary, the new flagship devices will see Apple become the first company to reach the trillion dollar mark.

Despite such a high value, White states that Apple is one of ‘the most underappreciated stocks in the world'. Apple's current Price-Earnings (P/E) ratio is roughly 16.9, in contrast, the P/E ratios for companies like Google, Microsoft and Amazon currently check in at 31, 30 and 183, respectively.

According to White, Apple shares could reach $200, which as a result could turn the iPhone giant into a trillion dollar company.

He added: "Similar to the bottoming process in Apple during the summer of 2013 that drove a strong rally into the spring of 2015, we believe the bottom in the stock during May 2016 and the upcoming iPhone cycle is setting up Apple to reach our $202.00 price target over the next 12 months."

This September, Apple is set to launch its premium iPhone 8 and later in the year the Apple Home Pod.

Related: Apple iPhone 8 may feature ‘mirror-like' exterior