Apple's market value is estimated to grow from the existing $800 billion to $3.4 trillion in the next five years.

According to a research note by Katy Huberty, analyst with Morgan Stanley, by 2020 Apple could be valued at this incredible figure as every facet of the company's business is gearing up to see more expansion and growth.

"Apple's ability to charge a premium, grow recurring revenue, and accelerate the pace of category expansion argue for a re-rating more in-line with platform companies, at 18-19x," notes Huberty.

Apple's business growth will be fueled by the fact that the company is foraying into pretty much all aspects that govern and are an inimical aspect of our daily lives, such as the Apple Watch, Apple TV and Apple Car. Currently, per the analyst, the company's existing product line-up addresses 33 percent of a user's needs and if Apple looks to expand then it can tap into "significant opportunities."

Huberty is also "bullish" on the prospects of Apple Pay and the company's music streaming service.

Per Huberty, what gives Apple an edge over rivals is its strong ecosystem which has the ability to entice users and lock them in. Basically, if an individual purchases an iPhone they will opt for a Mac or an iPad or any other Apple product owing to the strong loyalty the company enjoys.

Not only are Apple users loyal, they are also willing to shell out premium prices for a top-end experience offered by iOS.

According to Huberty's estimates, Apple could hit jackpot with its much-rumored Apple Car, which could become the company's biggest revenue generator. The Apple Car alone adds $1.6 trillion value to the company per the analyst's projections.

Another potential area for growth for the company is its Apple TV as an average American spends nearly three hours in front of the idiot box. If Apple can generate novel and exciting content for its Apple TV then it would be able to draw in more people into its popular ecosystem.

Huberty also anticipates that nearly 10 percent of existing iPhone users will purchase the impending Apple watch which is slated for a March 9 debut.

The analyst has increased her estimations on the price target of Apple's stock from $133 to $160. She also suggests a "bull case" situation where Apple may outperform the estimates and its stock could command a price of $190.