Uncle Miltie

Jobs' Integrity: A Reason to Buy Apple

That is exactly correct - Apple has over $32 per share in cash and 0 debt. Back out the cash from the stock price, and you have a better indication of EPS - in the 17x range. And it still does not correctly account for deferred iPhone and Apple TV earnings, which might be worth another $10 per share (my SWAG, unsure of the real number). Both of those factored in to a company continuing to beat all earnings estimates and continuing to grow even during a recession, and it's hard to go wrong with AAPL the stock.


On Apr 28 06:41 AM Roger Knights wrote:

> "23X EPS is a little rich right now"
>
> I'm fuzzy on the details, but I have the impression that the EPS
> figure doesn't include the deferred earnings from the iPhone, and
> isn't adjusted for the huge portion of the share price that is based
> on Apple's $30 billion cash hoard. With those two adjustments made,
> and in light of Apple's new products in the pipeline, a price of
> $150 wouldn't be excessive.