What Is Steve Jobs Worth to Apple? About $20 Billion

Jeff Segal of BreakingViews tries to calculate the value of Steve Jobs to Apple (s AAPL).

  • Apple Mac Line at twice the industry average multiple (1.3 times revenue) is worth about $19 billion.
  • iPod business at five times EBITDA is worth about $14 billion.
  • iTunes music store at six times EBITDA is worth about $1 billion.
  • iPhone business could be worth about $17 billion.
  • Other businesses, about $11 billion, using Microsoft (s msft) multiple of 2.8 times revenue.

In total, these businesses can be valued at $60 billion. Given that Apple has a market capitalization of $80 billion, Segal concludes that Jobs is worth $20 billion to Apple’s shareholders. Jobs gets a premium because he is the Pied Piper who makes it all come together, and that is why Apple shareholders need a rock-solid succession plan. 

While Segal does have a point about the succession plan, I would be hard-pressed to buy into the $20 billion valuation. He also didn’t factor in the $24.5 mbillion in cash Apple has in its coffers. To me, Apple is Jobs and Jobs is Apple. What do you guys think?