Jean-Louis Gassée wrote the missing theory of Apple at $1Trillion.

This is where we get into some intriguing comparisons. Microsoft’s P/E is a solid 48 and Alphabet’s hovers around 50…but Apple’s is a meager 17. Caricaturing just a bit: “Apple still trades like a steel mill going out of business.” In more sober words, investor actions say Microsoft’s or Alphabet’s future earnings per share are safer than Apple’s, hence the premium they’re willing to pay. With a P/E of 50, Apple’s Market Cap would approach $3T…

And, as he mentioned in the article, this is after Apple buying back more than $40 billion worth of shares. The buyback meant that Apple had to wait longer to hit the trillion mark.

The broad recognition accorded to last week’s milestone is a deserved mark of respect for Apple, a company that has so often been “misunderestimated” and given up for dead. So dead, in fact, that Michael Dell once recommended shutting down the company and giving the cash back to shareholders. Pundits and competitors constantly predict the death of the iPhone because “it’s the same closed system mistake as the Mac” or “modularity always wins!”. These death warrants were issued by prestigious academics and still carom around the blogosphere’s echo chamber.

Yet, years later, Apple continues to follow its heterodox path and to prosper as a result. There are two reactions to this annoying anomaly. One is to stick to one’s comfortable theories, books and speeches. “Just wait, Apple will meet its preordained fate. Sooner or later!”.

It is hard for Apple to shake off the doom and gloom that critics and pundits cast on it, even when the company is making a healthy profit. Other companies are making a loss or seeing their margins shrink drastically and yet still so loved and valued.