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Google has now overtaken Apple in ‘Enterprise Value,’ a key measure of the value of a company, reports Seeking Alpha.
While Apple’s market capitalisation (the total value of all its shares) remains higher, this value includes $141B in cash. Enterprise Value deducts any cash held by a company as – if you were wealthy enough to buy Apple – you effectively immediately get that back from the price you paid. EV is thus considered a better measure of the underlying value the market places on a company.
By this measure, the market reckons Apple is worth $339B, while Google is now valued at $342B.
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