In short it is there earnings growth. What do the large caps with higher PE's higher than Apple have in common? Predictable and steady earnings growth. Apple had that until the later part of 2012. 2013 was a year of negative earnings growth and it scared the daylights out the market. Mr.Market gave Apple a nearly 50% haircut. Now here we go in 2014 and Apple had a decent year of growth and now a monster year in 15 is in store. Here is the problem. The market sees 2016 as a possible 2013. That makes it hard to value now. When and until Apple can convince the market that its earnings are going to be either good 7-10% or great on a consistent year in and year out basis it will mis or undervalue the company. Are you paying attention Carl?
The man has ZERO credibility. His credit score should be ZERO. He has filed for bankruptcy more times than I can count. I wouldn't loan him a dime much less let him run the greatest country in the world. Empty suit.
I completely agree. 18 will be the high PE for the next 2 Q's and 16-17 will be the PE range at the end of the year. I know the PE shouldn't contract, and it will drive uncle Carl to near madness, but he will learn what all 3-5 year longs have found out. The reason for the contraction will have nothing to do with the 40% plus growth this FY but will have everything to do with the hard comparisons this kind of growth will cause in FY 16.
One more thing about cash on the books. It is less than it shows . Remember Apple is borrowing against it and it's predominately overseas so the market is ignoring it.
I never do PE valuation x cash. I would if the market would but it won't so why bother.
Serious jealousy going on here. I don't know why but yes he has a problem with Apple and he loves to trash them.
I love you guys. Really I do . That's why I have to ask you if you know that unrealistic expectations can only end in depression? Be bullish but not foolish. I hope you are all right but I don't expect it at all.
and gets a 20.5 PE. Brian White should know that Apple will NEVER see 20.5 in his lifetime. Is it fair? No WAY!! Is it real? YEs. If you want to put a Trillion dollar market cap on Apple...fine. Just don't do it on the HOPE that Apple will get a 20 P.E
This stock has already pulled back from its latest high over 133 to the 120 area. It has consolidated and rested. Get in the game or get out of it. They are not hitting them that deep.
Agno you're right about most everything but your expectations of a higher PE than you have now is(while understandable and justified ) where you will probably be wrong. I suspect as the year progresses you will hear more and more about how hard the Comps will be next year. This will keep the PE in and around 16 with possible ,short lived , spurts to near 18.
Tell me Apple has a lot more to offer than 25 channels for 30-40 bucks. Tell me what I get for my 30-40 bucks that I don't get from cable. I'd love to cut the cord but this isn't going to do it for me. Maybe if I only had to pay for what I watched? What a novel idea... No all we have here is another bundled service agreement and it isn't even competitive. You guys know I am long but sometimes I just don't get it.
coming from all directions. It is so pervasive that it can only be bought and paid for . Remember a lot of money that was in AT&T must go into Apple by start of business Thursday. Just remember where these stories came from so you will know they are the best money can buy in the future.
NO! NO! SAY IT ISN'T SO! All I have to say to the idiots that wrote that headline designed to make you believe the Apple watch will be a flop...THERE ARE 200 MILLION PEOPLE IN AMERICA!. The pole said that 13%(roughly 33 million ) Americans said they would buy an IPhone just to be able to buy a watch. Do your own dd.
The rebound will be hard and fast. It will test the 50 day and then it will be as oversold as it was overbought when it hit 133.
that is a good thing. It looks like a 3-4 % add to expected earnings is about all that is expected. What you probably don't see is that the current earnings projections not only don't have much watch earnings in them,they are low by at least 7-8%. Add the buyback and watch and you could easily see 9.35 for fiscal 2015.
put a contracted PE of 16 on that and you get right at 150 by late fall. That is what I expect. a 23 % gain from here....nothing more.
No worries mate. Most of the folks dogging this company here are newbies that have no vision or interest in this company beyond a short term trade.