“Despite earnings and revenues growing over 100% and 80% respectively, Apple receives a 15 PE multiple,” Stephen Rosenman writes for Seeking Alpha.
“Apple grew its revenue and earnings faster than the stocks trading at much higher valuations, including Salesforce.com (CRM) trading at a PE of over 600,” Rosenman writes. “I screened tech stocks trading between a PE of 13 and 16, market caps over $10 billion and came up with Nokia (NOK), Yahoo (YHOO), IBM (IBM), Cisco (CSCO) and Ericsson (ERIC).”
• Nokia has been smashed by the iPhone and Android. Yet, it’s in hailing distance of Apple’s PE. You can argue that its pricing makes sense on P/S and P/CF. (Hey, you can argue anything.) Moreover, Its dividend yield is a red flag.
• Crazy as it seems, Yahoo is actually valued more highly than Apple in terms of PE and Price to Cash Flow.
• Ericsson is a lumbering large tech name.
• IBM and CSCO are not far off Apple’s valuation.
Read more in the full article here.
[Thanks to MacDailyNews Reader “Joe Architect” for the heads up.]