Apple Breaks $3 Trillion Market Cap, Sets New Record High: Can The iPhone Maker's Stock Keep Climbing?

Apple Inc. AAPL once again broke the $3-trillion market cap barrier Friday. The Cupertino-based technology giant saw its stock rise 1.3% to a new all-time high of $192, cementing its position as stock market leader.

Apple’s outstanding performance has resulted in an approximately $500-billion lead over its closest competitor, Microsoft Corp. MSFT, which has a market capitalization of $2.5 trillion.

The iPhone maker maintains its status of the most-representative stock in the S&P 500 index, rising to a 7.7% weight in the SPDR S&P 500 ETF Trust SPY.

Apple’s stock has now gained about 53% so far this year, and if it manages to end trading on Friday at its current or higher level, it will mark the best-performing semester since January 2009.

Chart: Apple Hits All-Time Highs, Market Cap Hits $3 Trillion

Apple’s Valuations Start To Look Stretched

Apple currently trades at a forward P/E ratio of 30, which is significantly higher than its 10-year historical average of 18x.

This valuation indicator might trigger worries about the stock’s current overvaluation, serving as a cautionary note to investors.

Apple’s current share price is about 3% higher than the price target set by the median Wall Street analyst, indicating that market expectations have probably priced in a substantial amount of the company’s future growth.