Apple’s stock price has more than doubled over the last year, but it’s not because of irrational exuberance. Instead, it seems that investors have started to really understand how Apple Inc. works.
Understanding what is happening to the Apple stock price should be of interest to more than just the investment community. For Apple’s customers, it’s an endorsement of the company’s long term strategies that have produced a string of hit products…
The ignorant and often cynical pessimism of tech media kept insisting that unit shipments and overall market share were critically important… Beyond minor bloggers, this story was paraded around by The New York Times, by Bloomberg, Japan’s Nikkei, and by other major news outlets.
Apple’s current P/E of around 26 is double where it has been across much of the last decade, but is still undervalued when compared to Google (28) or Microsoft (31). That indicates that the company’s massive jump isn’t out of the ordinary, but rather a long-overdue correction. It also indicates that Apple’s executives were right when they claimed that the company was undervalued and that the best use of the company’s cash was to buy back shares and retire them, transferring that value to their shareholders.
To anyone who listened, that clearly articulated message has proven to be a huge windfall, creating massive billions of capital for shareholders who stuck with the company.
MacDailyNews Take: We (minor bloggers) have been saying Apple is undervalued for several years.
AAPL was undervalued before its recent overdone haircut. — MacDailyNews, November 23, 2018
Apple’s share price could double and it’d still be undervalued. — MacDailyNews, August 30, 2016
Even as it made Apple the world’s most valuable company, the market has never really understood Apple. — MacDailyNews, October 5, 2015
The clarity of Apple’s story was never obscured for those not easily blinded by the rather transparent manipulations of others. — MacDailyNews, February 12, 2008