Ray reports, “He argues: ‘Given Apple’s revenue growth of 66% in 2011 and mid-thirties operating margin, it would not be surprising to us if the stock carried a P/E of 15-20x. Instead, Apple sells at 12.4x our C2012 estimate and 11x our C2013 forecast. Excluding $115 in cash per share, the P/Es contract by two points to about 10x and 9x. With a current ROIC of 36% and decent growth prospects given that Apple has only 9% of total handset units and dominates the nascent tablet market, this valuation appears quite conservative.’”
Ray reports, “There are even references right up front to figures from ancient history: ‘We would make an analogy between Apple and the empire of Alexander the Great, who has been emulated by generals throughout history. Alexander dominated the world stage for 13 years; his greatest achievements include founding some 20 cities and conquering the Persians. Apple has begun to dominate the tech scene with its world’s largest market cap, increasing geographical influence, and leadership in multiple product categories. Apple is creating a tech empire in the consumer world that is now influencing the enterprise environment as well.’”
Much more in the full article here.
MacDailyNews Take: Apple the Great!