An 11% earnings yield is attractive even if we see no growth. This stock is cheap no matter how you look at it! Growth would just be icing on the cake.
My formula is good because its simple. No precision required (unlike a DCF model). Precision is simply not possible contrary to what most academics believe. It gives you an "approximate" answer. If you use a large margin of safety you will do very well over the long run. Also, unlike most models, it takes into account a company's capital structure. That's why a company with a low P/E can be expensive even if it has a high growth rate.
Apple Does Not Have $137 Billion In Cash [View article]
This is one of the most ridiculous articles I have read in a long time. Please take a look at the 10k and see what "long-term investments" are composed of. Reply here when you get the answer. Apple could easily liquidate its long-term investments and turn them into cash.
Apple Trading At 2.56x 2016 Cash Flow [View article]
People, you must realize that Apples market cap is over $500 billion! Large institutions already own most of the shares. Even if Apple is cheap, its very difficult to move the stock without institutions investing $10's of billions at a time. That's one bad thing about being so large, in my opinion. If Apple had a smaller market cap, I can almost guarantee it would have a much higher price/earnings ratio.
Apple Trading At 2.56x 2016 Cash Flow [View article]
I have also talked to some people in China and they told me that Apple products really aren't as popular as they are here. People there prefer Samsung products, according to them.
Apple Trading At 2.56x 2016 Cash Flow [View article]
Apple has already said they are coming out with an iPhone 5s in June of 2013. This is getting old, in my opinion. Once upon a time this company came out with new and innovative products now its just the same old thing every few months. I personaly wont buy the 5s, I will wait for the 13s to come out in a few years lol.
Apple Trading At 2.56x 2016 Cash Flow [View article]
Buffett never models or forecasts and yet he is the greatest investor of all time. The purpose of the margin of safety is to render a forecast unnecessary.
Apple Trading At 2.56x 2016 Cash Flow [View article]
"Apple generated $50.9 billion in cash flow." Why aren't you subtracting CAPEX? Is Apple developing some kind of new technology that will allow it not to have to spend money on CAPEX in the future? Using “cash flow from operation” from the cash flow statement without taking into account CAPEX (tangible and intangible) is not much better than valuing a company using EBITDA. I also suggest you subtract stock based compensation expense, which is close to $2 billion and rising.
Apple Is Significantly Undervalued [View article]
Apple Is Significantly Undervalued [View article]
Apple Does Not Have $137 Billion In Cash [View article]
Apple Does Not Have $137 Billion In Cash [View article]
Apple Does Not Have $137 Billion In Cash [View article]
Apple Trading At 2.56x 2016 Cash Flow [View article]
Apple Trading At 2.56x 2016 Cash Flow [View article]
Apple Trading At 2.56x 2016 Cash Flow [View article]
Apple Trading At 2.56x 2016 Cash Flow [View article]
Apple Trading At 2.56x 2016 Cash Flow [View article]
Apple Trading At 2.56x 2016 Cash Flow [View article]
Apple Trading At 2.56x 2016 Cash Flow [View article]
Apple Trading At 2.56x 2016 Cash Flow [View article]
Apple Trading At 2.56x 2016 Cash Flow [View article]