“For all the fanatical devotion to Apple among both customers and Wall Street analysts, the stock trades at what by almost any statistical measure appears to be an insanely low valuation,” Eric Savitz reports for Forbes.
“Bernstein Research analyst Toni Sacconaghi did some analysis of the situation in a report this morning,” Savitz reports. “The company, he notes, trades at 11x calendar 2012 earnings, or about a 6% discount to the market.”
Savitz reports, “He also asserts that Apple’s earnings are understated by about 8% due to conservative tax accounting and low interest rates, which suggests the stock is really trading at a 14% discount. The last time the stock traded below the market multiple on a price/forward earnings multiple was in late 2000.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Sarah” for the heads up.]