Value Expectations

Apple: Buy, Sell or Hold?

Hi Stephen Rosenman,

I would like to clarify that our thesis does not rely on one variable.
We are actually using our Economic Margin Framework which encompasses a valuation system that explicitly addresses the four main value drivers of enterprise value: profitability, competition, growth, and cost of capital.

Below is a brief overview:
valueexpectations.com/...

For an in-depth overview, here is a white paper on our Economic Margin Frame:
www.valueexpectations....

We do appreciate your feedback and will do a better job of elaborating on our process.

VE



On Jun 20 02:17 PM Stephen Rosenman wrote:

> Apple's share price does not depend on sales growth. Rather, its
> price hinges on earnings. Nokia, for instance, increased its revenue
> from $34 billion to $58 billion over the last 3 years. Unfortunately,
> for Nokia, profit margins fell to 0.04%. Apple, in contrast, has
> not only grown revenue but driven net profit margins to 14.7% (and
> its iPhones which command greater margins have not yet been factored
> in). The author's thesis looks at only one variable (and not the
> key metric) to derive fair price.