“At Friday’s closing price of $574.13, the shares are trading at a conservative 14 times trailing 12-month earnings of $41.04 with more than $115 in cash standing behind each outstanding share,” Eventide writes. “For investors, understanding Apple’s potential for continuing strong growth is at least as important as an appreciation for the company’s growth performance over the past six and one-half years. At Friday’s closing price and lowly earnings valuation, the market is discounting Apple’s continuing growth potential.”
Eventide writes, “There’s no disputing the fact Apple designs and markets some of the world’s most sought after consumer products. But Apple’s success is driven by more than smart product designs and technological innovation. Relentless geographic expansion is an important catalyst for the company’s fast rates of growth. If Apple were a bullet train, it would be a bullet train powered by two parallel tracks. The first track is exceptional product design and the consequential product popularity. The second track is expansion of product sales into new and emerging markets.”
Read more in the full article here.