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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.

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.