“Despite growing pessimism about its growth momentum and perceived inability to compete with Google and Microsoft, Apple’s most recent quarter told a different story,” Richard Saintvilus writes for Forbes.

“Despite 52% sequential revenue growth and 18% year over year, Apple’s first-quarter report was considered a disappointment,” Saintvilus writes. “But things need to be kept in the proper perspective, especially when using that word. Granted iPhone sales were slightly under what the sell-side analysts would like, but relative to expectations it was no calamity.”

“I don’t think large revenue growth numbers are possible without a lower-priced iPhone,” Saintvilus writes. “However, in the meantime, this is still a story about valuation. Apple is clearly too cheap. Granted expectations were a tad high several months ago. But things are now on the opposite end of the extreme. Fair value is well ahead of where the stock is trading today… This is not a sub-$500 stock.”

Read more in the full article here.