AAPL keeps outperforming the market with its stronger than expected results. The stock has moved from a low of $315 back in June 20^th to a record $400 yesterday. The stock touched the $400.00 level for a second yesterday but eventually closed at $1.50 shy of that number (still a record though).

I expect AAPL to close above the $400 level today, and if the stock maintains a price above the $400 for the remainder of the week, then expect it to skyrocket next week, and who knows maybe it may reach $500 by the end of next week.

But the question is, how much is AAPL really worth?

Apple, as stated earlier in this post, keeps beating estimates every quarter, and there is no reason for it whatsoever to trade at a P/E of a mere 15.77. A P/E of 25 is fairer and more logical. Which means that a fair price for AAPL, if we take the current earnings into consideration (EPS = $25.26), should be 25 x $25.26 = $631.25. Yes, AAPL is worth 57% more than what it is worth today. Beware though, AAPL may collapse if the following happens:

– People start hating their products
– Mass media start conspiring against Apple and badmouthing them (I think they’ve done it before)
– Steve Jobs dies

Is AAPL too big to fail? I think not, but at the current moment, nobody wants it to fail, and that’s what really counts.