“How is it that one of the most-loved, fastest growing, dominant companies in all the land can only be trading at a market multiple? That’s equivalent to being a C student for those unfamiliar with the term,” Yahoo Finance’s Breakout writes. “The company in question here is none other than Apple (AAPL). The fact that it trades at a market multiple implies that it is no better than the average stock in the S&P 500 (an assumption that is just insane).”
Apple and the S&P 500 both trade at about 11 times estimated forward earnings for the next twelve months, which tells me – and many others – that contrary to the notion that Steve Jobs was propping Apple up, fears about his departure have long been holding it down,” Breakout writes. “hy else would shareholders and analysts have been able to largely shrug-off the worst news to hit Apple in years –maybe ever?”
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Breakout writes, “Because everybody knew this day might come, long before it actually did. And it’s why analysts like Scott Kessler of Standard & Poor’s – and virtually every other firm that covers Apple – came out today and backed their ‘buy’ ratings; because Apple is cheap.”
More in the full article, including a video discussion, here.
Related article:
Has Steve Jobs become too much of a liability for Apple shareholders? – December 17, 2008