And some liabilities. Apple e.g. in 2013 had 8.71B cash + 1.76B inventories and 16.96B debt. So if suddenly nobody wanted Apple products anymore, guess what the shareholders would get.
According to Yahoo! Finance Apple’s total assets are about $200B and their total liabilities are about $80B. (Or were in late September 2013, the latest for which they give figures.)
(Curiously, the figures there match yours for inventory and debt, but they give a much larger figure for “cash and cash equivalents” than yours. But as the totals indicate, the numbers you mentioned are very far from telling the whole story.)
So, it looks as if Apple has about 6 billion shares, and their net assets minus liabilities are a bit over $100B. So if people suddenly stopped buying their products (in some way that didn’t change the value of their assets, which would be a bit hard but never mind) then each share would be worth about $17.
[EDITED to fix an idiotic factor-of-1000 error; oops. Thanks to Lumifer for pointing it out.]
Of course. It’s perfectly possible for a company to have zero or negative book value. Your Apple numbers are quite a bit off, though—look here for example.
The issue, however, is not what the price is determined by—for all tradeable goods in a more or less free market the price is determined by supply and demand and, yes, it is true for both bitcoin and AAPL shares, but it’s also true for tulip bulbs and old baseball cards. The issue is that you said that that bitcoin prices are “anchored” in the same way the equity share prices are anchored and I don’t think this is so.
And some liabilities. Apple e.g. in 2013 had 8.71B cash + 1.76B inventories and 16.96B debt. So if suddenly nobody wanted Apple products anymore, guess what the shareholders would get.
According to Yahoo! Finance Apple’s total assets are about $200B and their total liabilities are about $80B. (Or were in late September 2013, the latest for which they give figures.)
(Curiously, the figures there match yours for inventory and debt, but they give a much larger figure for “cash and cash equivalents” than yours. But as the totals indicate, the numbers you mentioned are very far from telling the whole story.)
So, it looks as if Apple has about 6 billion shares, and their net assets minus liabilities are a bit over $100B. So if people suddenly stopped buying their products (in some way that didn’t change the value of their assets, which would be a bit hard but never mind) then each share would be worth about $17.
[EDITED to fix an idiotic factor-of-1000 error; oops. Thanks to Lumifer for pointing it out.]
That’s billions (thousands of millions), not millions.
Apple’s book value per share is about $20.
Of course. It’s perfectly possible for a company to have zero or negative book value. Your Apple numbers are quite a bit off, though—look here for example.
The issue, however, is not what the price is determined by—for all tradeable goods in a more or less free market the price is determined by supply and demand and, yes, it is true for both bitcoin and AAPL shares, but it’s also true for tulip bulbs and old baseball cards. The issue is that you said that that bitcoin prices are “anchored” in the same way the equity share prices are anchored and I don’t think this is so.