DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Apple spanks expectations, again. Shares up $40 in after hours trading

**Loovikeillilen** · 04-30-2012, 10:49 PM

Is most of their value on paper or in investments, assets, etc? Their value is because their stock is way overvalued. You know it, I know it, anyone watching them know it. They are a solid company, but their stock price is halfway priced on the coolness factor too. And like nokia, it won't last. A samsung will come along and take their share too.

Sorry mate, but that's nonsense. It's not just that I disagree, it's that it's literally nonsense. Apple's P/E is relatively low, especially given that $150bn of the value is literally reflected by their net assets. They are actually under-valued by almost any objective measure.

When you look deeper, for example the PEG ratio (growth to price ratio) Apple is even further under-valued - it's less that a quarter of the NASDAQ average. Apple is rated as only at 15% of its true value, compared to the NASDAQ which is 60% of it's true value.

Apple tv *might* be their last big thing. The might is because, it could just as easily fail. After that, the cool stuff will be coming from google (hud glasses) and microsoft (fold-able computers/smart phones). It will be really tough for apple to retain the coolness factor when they are patented out of the market. The market for tablets, e-books, streaming content etc has barely got going. There is enormous growth potential in that space internationally. Apple is one of the very few companies that has all three things needed to make this a success - hardware, software and content. Google, MS, Nokia, Samsung etc don't have the full package. Now perhaps other models will prevail, but so far in the post-PC world, that's not proving true. Even Amazon has recognized this by releasing the Kindle Fire. The reason Sony lost to Apple in the MP3 market, is because they couldn't write good software for either the device or the back-end.

No way would I buy apple stock today at this price. And those that are, are playing a crazy game of russian roulette.

Do you really look at their valuation being twice that of exxon (or anyone else for that matter) and not scratch your head? Yes absolutely, but not for the reasons you said in your opening.

04-30-2012, 10:49 PM	#34
Loovikeillilen Join Date Oct 2005 Posts 459 Senior Member	Is most of their value on paper or in investments, assets, etc? Their value is because their stock is way overvalued. You know it, I know it, anyone watching them know it. They are a solid company, but their stock price is halfway priced on the coolness factor too. And like nokia, it won't last. A samsung will come along and take their share too. Sorry mate, but that's nonsense. It's not just that I disagree, it's that it's literally nonsense. Apple's P/E is relatively low, especially given that $150bn of the value is literally reflected by their net assets. They are actually under-valued by almost any objective measure. When you look deeper, for example the PEG ratio (growth to price ratio) Apple is even further under-valued - it's less that a quarter of the NASDAQ average. Apple is rated as only at 15% of its true value, compared to the NASDAQ which is 60% of it's true value. Apple tv might be their last big thing. The might is because, it could just as easily fail. After that, the cool stuff will be coming from google (hud glasses) and microsoft (fold-able computers/smart phones). It will be really tough for apple to retain the coolness factor when they are patented out of the market. The market for tablets, e-books, streaming content etc has barely got going. There is enormous growth potential in that space internationally. Apple is one of the very few companies that has all three things needed to make this a success - hardware, software and content. Google, MS, Nokia, Samsung etc don't have the full package. Now perhaps other models will prevail, but so far in the post-PC world, that's not proving true. Even Amazon has recognized this by releasing the Kindle Fire. The reason Sony lost to Apple in the MP3 market, is because they couldn't write good software for either the device or the back-end. No way would I buy apple stock today at this price. And those that are, are playing a crazy game of russian roulette. Do you really look at their valuation being twice that of exxon (or anyone else for that matter) and not scratch your head? Yes absolutely, but not for the reasons you said in your opening.
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