spaceage

A Glimpse Into Apple’s Future

"To play devil’s advocate, and in fairness to the skeptics, it is an inescapable fact Apple has an alarming P/E, up there with Google."

A 48 PE (or whatever it is this week) isn't "alarming" for a company growing earnings at 70%+ annually...it is actually low. With a forward PE of 30, the current price is cheap if you believe that they will grow earnings another 70% this year. That is a pretty realistic expectation just on iPhone residuals and with the rest of the business holding serve from this year's levels, which is unlikely since the company is expanding market share in computers..."skeptics" are just the uninformed about the fundamentals of the company who are living in a perpetual "once ailing Apple Computer" mindset.

Check back at this time next year when FY09 EPS estimates are $9+ and the same 30 forward PE has the price at $270+. $190 will seem cheap.