“If, like me, you’ve spent years hunting for bargains in obscure corners of the stock market, it can sometimes be easy to miss tremendous value staring you in the face,” Nick Louth reports for The Financial Times.
“Take Apple, now the world’s second-most valuable company, with a market capitalisation of $330bn. This is the company that practically invented the MP3 player and tablet computer markets, through the revolutionary iPod and iPad, and became a leader in smartphones through the iPhone,” Louth reports. “Although it has only a 4 per cent market share in the global market for mobile phones, data from Asymco show that its iPhones account for half of all the industry’s profits.”
Louth reports, “To see the real value of the stock, you have to subtract the cash mountain – a veritable Himalaya of $50bn, or $55 per share – on the balance sheet. That is enough to buy Tesco or Barclays outright. So, on an adjusted share price of $295 net of cash, the operating ‘core’ of Apple has a 2011 p/e of 13. Rival shares are so much pricier.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Sarah” for the heads up.]
… what the P/E is. Though I have to admit that 13 is a pretty good number. You still have to pay the $350 per share, plus the related costs. Even my (bargain) broker would charge half-a-buck a share in 100-share lots. Less price-conscious ones could charge several dollars per share purchased. Split. Please!
Time to fire your broker. TD Ameritrade charges $10 per trade regardless of size.
Time to fire your broker, Gary. Interactive Brokers would charge less than a dollar to buy 200 shares of Apple.
@It doesn’t matter …
Where are you from?
Did you arrive here via a time machine?
“Less price-conscious ones could charge several dollars per share purchased. Split. Please!”
So you want to have to buy twice as many shares to get the same value and pay twice the per-share cost?
Well that makes sense.
Who in the HELL buys in round lots or uses a broker nowadays???? You still living in the 80’s????? Try $8.99 a trade for 1 share or 10,000 shares! WTF????
What?!?
Half a buck a share in commission?!?
Even my Schwab account only charges $8.95 a trade, and it doesn’t have to be round lots. There’s no disadvantage.
eTrade is also 9 bucks a trade. What broker charges per share any more?
Apple has $59.7 billion in cash as of 12/31/10. The trailing twelve month P/E, net of cash, is 17x. The twelve month forward P/E is 9.6x, assuming earning grow by 78% in 2011 just as earnings grew in 2010. That may be a conservative guess. AAPL is totally undervalued. It is cheaper than the S&P 500.
Well said and probably even cheaper than you are thinking ….
I hate to be a bearer of specific news- BUT WHAT THE HELL!
The iPod and IPHONE…. ARE….. MP4 PLAYERS!!!!!
Please, MP4! MP4 player! GAWD, I hate the quality of MP3’s.
Can we settle the TYPE of device that Apple brought to market-can we?
: P
Due to budget cuts, the MP4 was cut to MP3.
Congress
… a factor of 10. That would be $.05 per share in a 100-share lot. That’s $5 for up to 350 shares. A bit over a penny a share for larger lots. That’s TD Ameritrade. TRowePrice costs five times that.
Used to be investment advisor for several years. Investment cost is not as important as is return on investment (ROI). Go ahead and leave your money parked in the bank at 0.8% and see where that gets you in a “lifetime.”
Have kept telling my current business partner to buy AAPL over the past 6 years (as I have bought in at 70, 135, 170, 195, and now at 340). He says the same thing as first poster “too expensive”. What a dolt!
As I run “laughing all the way to the bank”. (Now that is an oxymoronic saying.)
I’ve got 7350 shares of AAPL, the majority purchased at an anerage of $17. It’s taken a lot of fortitude to hold this long, thru ups and downs when the pros were saying “sell”!
AAPL has completely changed my retirement – I’ll easily be out at 55 now.
The myopic self absorbed US thinks the world is the same as the US? PetroChina is worth more that Exxon according to the Financial Times. That means that Apple might make number 3 but there are more companies in China that rank right up there too.