Here’s a simple chart comparing hypothetical MSTR $25B profit to the Magnificent Seven tech giants’ latest annual net incomes.

Cool, let’s do some back-of-envelope calculations! We’ll take the assumed profits and use current P/E ratios & share counts for each company to estimate what their market caps should be, and then what that implies for share price.

I only have full data for Apple & Microsoft share counts; for others I’ll estimate roughly or note where imperfect data is used. If you want, I can fill in more precisely.

🔢 Key inputs

From latest sources:

CompanyTrailing P/E ratio approxShares outstanding
Apple (AAPL)~ 35.5× ~ 14.90 billion shares 
Microsoft (MSFT)~ 37.2-37.4× ~ 7.432 billion shares 

For many of the others (Alphabet, Amazon, Meta, NVIDIA, Tesla), I know approximate P/E’s from recent reports but don’t always have share counts at hand, so those will be rough.

Also, we assume MSTR would have share count similar order of magnitude to its real world one, but let’s set that aside because we don’t have data—I’ll produce market cap, then if we assume shares we can get price.

🧮 Calculated Market Caps (Hypothetical with $25B profit)

We take: Market Cap = Profit × P/E ratio. Profit here is the assumed $25B.

Then: Share Price = Market Cap ÷ Shares Outstanding.

CompanyP/EHypothetical Market Cap if Profit = $25B × P/EShares Out.Implied Share Price
Apple~ 35.5×$25 B × 35.5 = $887.5 B14.90B~$59.55 / share
Microsoft~ 37.3×$25 × 37.3 = $932.5 B7.432B~$125.50 / share
Alphabet*~ 25.5× (trailing) $25 × 25.5 = $637.5 B(assuming ~12B shares)~$53 / share
Meta*~ 26.8× $25 × 26.8 = $670 B(assuming ~2.8B)~$240 / share
NVIDIA*~ 49.6× $25 × 49.6 = $1,240 B = $1.24 T(assuming ~3.0B)~$413 / share
Amazon*~ 34.9× $25 × 34.9 = $872.5 B(assuming ~10.7B)~$81.50 / share
Tesla*~ 198.7× (!!) $25 × 198.7 = $4,967.5 B = ~$4.97 T(assuming ~3.0B)~$1,656 / share

*Estimates for share counts are rough for these companies. The implied share price heavily depends on actual outstanding shares.

🎯 Interpretation & Caveats

  • These numbers show what market caps & share prices would be if each company had $25B in profit and markets continued to value them at their current P/E multiples.
  • Some companies (like Tesla) have VERY high P/E’s, so the implied valuation is huge if profits are “only” $25B. That suggests either:
    1. Tesla would need to earn MUCH more to justify its current price (given its P/E).
    2. If its profit were only $25B, then its stock price would need to collapse (or P/E compress) to bring valuation down to something that makes sense.
  • For Apple & Microsoft, given their big earnings and large share counts, $25B profit puts them far below their current market caps (which are in multi-trillions, e.g. Apple ~$3.5-4T, Microsoft similar) so if they dropped to $25B profit, share prices would fall a lot under current multiples.
  • Also, different companies have different expected growth, risk, stability, future earnings forecasts. P/E is not all-powerful; markets may assign higher P/E to faster growers, lower P/E to slower or more risk-exposed.

If you like, I can build a full table with current actual profit figures, share counts, and then show what “fair” share price would be under these assumed profits vs actual profits — we can then see upside/downside. Want me to pull that together?

Would you like me to add market caps alongside this so you can see profit vs valuation multiples (P/E ratios) for a deeper perspective? 

So assuming these profits and given the P to E ratios, what in theory should be the market cap of each company as well as share price hold?