This Chart Is Driving Apple Bulls Crazy - GoFuckYourself.com

grumpy · 12-07-2011, 03:24 PM

http://e.businessinsider.com/public/482186

Apple's price to earnings ratio is at a relatively paltry 14 right now, and it's driving Apple bulls crazy.

The chart below, which shows Apple's shrinking PE, from Apple analyst Andy Zaky has been passed around for the last week. (At the time Apple's PE was 13.3.)

What's wrong with this chart?

Zaky explains: "Now even though Apple?s growth has far and outpaced the growth of Oracle (16.35 P/E), Amazon (96.15 P/E), Google (19.19 P/E), Cisco (15.11), Qualcomm Inc. (20.62), Amgen, Inc (13.53), Comcast (15.11 P/E), IBM (13.95 P/E), Chevron (13.50), Johnson & Johnson (14.94 P/E), Procter & Gamble (15.49 P/E), and AT&T (13.91 P/E), the stock trades at a far lower valuation relative to these top holdings on the NASDAQ-100 and S&P 500. Some of these companies have actually contracted in 2011. Yet, the market values the earnings out of these companies on the order of 4-5 times more in some cases than they value the earnings out of Apple."

Of course, there's more than one way to value a stock. If you value it based on trailing free cash flow, it's arguably priced fairly, says our Henry Blodget.

VikingMan · 12-07-2011, 05:08 PM

Does the fact Apple markets their products to the dumb and trendy affect the price of the stock? Perhaps people do not see this trend continuing indefinitely. I have been shorting since the stock was above 400. Thought it would be lower now but I am being patient.

OneHungLo · 12-07-2011, 05:15 PM

Quote:

Originally Posted by *******

Does the fact Apple markets their products to the dumb and trendy affect the price of the stock? Perhaps people do not see this trend continuing indefinitely. I have been shorting since the stock was above 400. Thought it would be lower now but I am being patient.

Out of all the companies to short, AAPL wouldn't be one I would choose.

bean-aid · 12-07-2011, 05:18 PM

Is it because of Steve Jobs death?

Sometimes a company is based on the owners...

12-07-2011, 03:24 PM	#1
grumpy Too lazy to set a custom title Join Date: Jan 2002 Location: Holland Posts: 9,870	This Chart Is Driving Apple Bulls Crazy http://e.businessinsider.com/public/482186 Apple's price to earnings ratio is at a relatively paltry 14 right now, and it's driving Apple bulls crazy. The chart below, which shows Apple's shrinking PE, from Apple analyst Andy Zaky has been passed around for the last week. (At the time Apple's PE was 13.3.) What's wrong with this chart? Zaky explains: "Now even though Apple?s growth has far and outpaced the growth of Oracle (16.35 P/E), Amazon (96.15 P/E), Google (19.19 P/E), Cisco (15.11), Qualcomm Inc. (20.62), Amgen, Inc (13.53), Comcast (15.11 P/E), IBM (13.95 P/E), Chevron (13.50), Johnson & Johnson (14.94 P/E), Procter & Gamble (15.49 P/E), and AT&T (13.91 P/E), the stock trades at a far lower valuation relative to these top holdings on the NASDAQ-100 and S&P 500. Some of these companies have actually contracted in 2011. Yet, the market values the earnings out of these companies on the order of 4-5 times more in some cases than they value the earnings out of Apple." Of course, there's more than one way to value a stock. If you value it based on trailing free cash flow, it's arguably priced fairly, says our Henry Blodget. __________________ Don't let greediness blur your vision \| You gotta let some shit slide icq - 441-456-888

12-07-2011, 05:08 PM	#2
VikingMan Exploiting human weakness Industry Role: Join Date: Jan 2008 Location: next to a salmon stream Posts: 6,511	Does the fact Apple markets their products to the dumb and trendy affect the price of the stock? Perhaps people do not see this trend continuing indefinitely. I have been shorting since the stock was above 400. Thought it would be lower now but I am being patient.

12-07-2011, 05:18 PM	#4
bean-aid So Fucking Banned Industry Role: Join Date: Jun 2011 Location: the land of woke sleuths Posts: 16,493	Is it because of Steve Jobs death? Sometimes a company is based on the owners...