Last Updated Apr 21, 2011 12:03 PM EDT
In respect to the prospects for Apple and its shares, here is what some folks are saying.
It is also interesting to consider this:
|Company||Price to Earnings Ratio||Market Value|
|XOM - Exxon Mobil||13.76||$424 Billion|
|MT - Arcelor Mittal Steel||19.5||$56 Billion|
In today's Wall Street Journal, it was pointed out that AAPL has approximately $66 billion in cash and short term investments on its balance sheet. When the market cap is reduced by this cash pile, the result is a share price for the company of about $283 per share. The resulting PE of these shares is about 15.7.
But this also puts the value of the cash portion of the share price at about $71 per share ($66 billion cash divided by 921 million shares outstanding). But that portion of the shares has no current earnings, so for now it is a dead asset, with the future potential to acquire earnings or be returned to shareholders. But this cash, since it is held in dollars also has the potential to depreciate, as the dollar continues to fall relative to other world market currencies.
Clearly the momentum in earnings and product releases for AAPL is there. For now, this is what the market is pricing into the stock.
Hopefully this momentum will continue.