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Is Apple really worth $1,300,000,000,000?

A major Apple shareholder and activist investor, Carl Icahn, believes Apple is worth much more than it is currently valued.

He believes the American company’s stock should be valued at $216 (£140), which is far more than the current price of $124.92 (£81.32).

At £140, the company would be worth £845 billion ($1.3 trillion), which is about the size of South Korea's gross domestic product, Reuters writes (opens in new tab).

Even without these crazy numbers, Apple is still the most valuable company in the world, worth $700 billion (£455.5 billion).

"This is why we continue to own approximately 53 million shares worth $6.5 billion (£4.23b), and why we have not sold a single share," Icahn said in a letter to his Twitter followers.

"Also, to the extent Apple introduces a TV in FY 2016 or FY 2017, we believe this 20X multiple is conservative," he wrote.

Carl Icahn is one of Apple’s top investors, and has predicted a 100 per cent increase in share value back in October 2014. Apple’s shares were worth $100 (£65) back then.

He urged the company to use its cash and buy back more shares.

"...We look forward to the capital return program update in April, anticipating it will include a large increase to share repurchases," Icahn wrote.

Apple had cash reserves of about $178 billion (£115.82 billion) as of Dec. 27, enough to buy IBM.

However, the company said it would give back more than $130 billion (£84.59 billion) to shareholders by the end of 2015.

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.