i'm not good on pricing psychology, but i don't think it changes the psychology of the market >> aswathsaid it was striking that apple has reached this level while distributing $300 billion in cash over recent years. couldn't you turn that around and say the way it distributed it by raising its dividend and buying back a lot of stock perhaps had a role on the way the market is valued in the company on the positive side >> i think it is being valued as a cash cow the reason why i think it's so impressive that the buyback hasn't had an overjaall impact is that the shares have dropped over the past six years. with the fewer standing, you got to make up for stock prices. others are able to deliver price appreciation of theremaining shares. >> that is how the math works, i guess. the question comes from now, does the market value the cash that apple still has in any way, except to say, just hand it to us or is it seen as something as a strategic, you know, war chest >> i think companies earn the right to be free and in this case, apple, because of its success, has a chance now to go out and

aswath damodaran is joining us by phone taking a look at apple despite a 5% move higher in the stock,t's still trading 17 times next year's earnings estimates. come that to other fang names. amazon 162 times is this stock still undervalued. >> i think it's reasonably valued here's why the ratio is not that good of an indicator if you look at the amount of cash they have and you take that out of the mix, they are actually not trading at that high amount of earnings. unlike other tech stocks which are trading richly relative to future apple is a reasonably priced stock that has to be brought into the mix somewhat >> in term of closing in on that trillion dollar mark market cap how do you expect the stock to trade from there >> i think you got to -- you got to be reality based. this is a cash machine but not going to be a high growth company. those days are behind it this is the greatest cash machine in history i'll say it again because it's a company -- can't top throwing off caps companies wish they had apple strong i think as long as you're realistic buying a low growth company that w