Carl Icahn Believes Apple Stock Too Cheap In Letter to Tim Cook; AAPL Worth $203 [VIDEO]

The Apple logo is pictured at a retail store in the Marina neighborhood in San Francisco, California April 23, 2014. REUTERS

Billionaire activist investor Carl Icahn has predicted Apple Inc. shares to be worth more than $200 in his latest attempt to force the iPhone maker to announce another round of stock buybacks. In an open letter to Apple's CEO Tim Cook, which was released to the public, Icahn reiterated that Apple should have a stock valuation of $1.2 trillion and claimed each share must be worth $203.

According to reports, Apple remains as the world's most valuable company with current stock value below $591 billion and stock price of about $100 per share. In Icahn's 4,500-word letter entitled "Sale: Apple Shares at Half Price", the billionaire investor talks about how the company was "dramatically undervalued." Icahn said Apple has a cash pile worth $133 billion but analysts have previously estimated that only a portion of the cash is in the United States. Reports said Icahn holds almost one percent of Apple stock.

The first part of Icahn's letter contained praises for Cook who Icahn called the "ideal CEO for Apple." Icahn wrote that Apple's latest flagship device, the iPhone 6, is prepared to take market share from Google's Android in the premium smartphone market. He described the iPhone 6 as another great device to add to the company's growing collection of products and services that work seamlessly together in an "increasingly dominant mobile ecosystem."

Icahn valued Apple stock based on an analysis of the company's business opportunities, sales projections of iPhones and iPads and the possible launch of an Apple TV. Icahn predicted Apple television may be released in the market in 2016. He believes televisions are "promising gateways" into every home for Apple's ecosystem to grow.

The billionaire activist admitted he first grew interested in Apple in 2013 when he launched a campaign for Apple to agree to a $50 billion stock buyback. He backed down from his position in February. However, in April, Apple had announced a stock split in an attempt to attract more investors to buy more stocks at a reduced price. The stock split has brought stock price down to over $90 on its first day of trading.

Icahn appeared in an interview with CNBC to discuss the details of his letter to Cook. Following the release of the letter, Apple issued a quick statement saying it would review its stock buyback programme every year. The company said it appreciates hearing from shareholders. The company has since returned $74 billion to stockholders in the last two years.