“The company has become not only the anchor of the stock market, but the beacon of innovation for the world,” Saintvilus writes. “(How’s that for my own “one-upping” attempt?) That it has surpassed Exxon Mobil as the world’s largest company — to the extent that it is now larger than Microsoft, Cisco and Intel combined — leads to the other popular component of any discussion that involves Apple: Its valuation. This is something many investors still do not fully understand. It seems the biggest source of disconnect, continuing due to a lack of appreciation between the difference of price and value.”
Saintvilus writes, “While many are quick to proclaim how expensive the equity is merely by looking at its stock price, I look at that valuation and see an equity trading at a considerable discount relative to its earnings potential. The stock is trading at a forward price-to-earnings ratio of only 10.”
Read more in the full article here.