“Based on our Discounted Cash Flow (DCF) analysis of the notebook PC businesses of Apple, HP and Dell, we’ve estimated that Apple’s notebook business is more valuable than that of HP and Dell combined. Apple’s higher valuation is driven by three factors: (1) higher average notebook pricing compared to HP and Dell (2) growing market share (3) higher margins (making Apple notebooks more profitable),” Trefis.com, a new financial platform that lets you see how a company’s products impact its stock price, reports via Seeking Alpha.
Notebook PC Valuation
• Apple: $22 billion
• HP: $12 billion
• Dell: $6 billion
Key Valuation Metrics
Read more in the full article here.
MacDailyNews Take: Here’s what we wrote last April in response to the cavalcade of fools calling for Apple to produce a low-cost “netbook” to “compete” with all of the other low-cost “netbook” peddlers out there:
Little Mikey had a lemonade stand. Okay, it was a kiosk. He sold 100 (8 oz.) cups yesterday for 10-cents each. He spent 11-cents per cup for artificial lemon flavoring, corn syrup, and the paper cups. He used tap water because it was free. Threw it all together in a big plastic pail. He’s out a buck for all of his trouble. Boy, that was a lot of work for less than nothing!
Around the block, little Steve runs a lemonade stand, too. It’s all blond wood and very clean. He sold 50 (24 oz.) glasses yesterday for 50-cents each. He spent 20-cents per glass on fresh-squeezed lemons, pure cane sugar, spring water (mixed with the utmost care), and some very nice glassware (he buys in bulk and gets a good price). He took home $15 yesterday. He’s currently building his newest stand right where Mikey’s used to be.
Macintosh. You get what you pay for (and part of what you’re paying for is a healthy Apple, able to conduct proper R&D in good times and bad, that produces innovative, high-quality personal computers that satisfy customers like no other).
[Thanks to MacDailyNews Reader “GetMeOnTop” for the heads up.]