Running The Numbers - Valuing Apple (AAPL)
After our recent post on Microsoft ($MSFT) - people asked for a quick take on Apple ($AAPL). Here it is.
Valuecruncher Interactive Analysts Report For Apple ( )
We have the comparator group set as Microsoft ($MSFT), IBM ($IBM), Google ($GOOG) and Hewlett-Packard($HPQ). You can change these peer companies on the site. For example you could add:
- Research In Motion ( ) - Interactive Analyst Report For $RIM
- Palm ( ) - Interactive Analyst Report For $PALM
- Qualcomm ( ) - Interactive Analyst Report For $QCOM
$AAPL’s share price is currently trading at US$160.00. This is well up from the 52-week low of US$78.20. The graph below shows the last 12 months of closing prices.
So what do we think?
Discounted Cash Flow Valuation
We have completed a discounted cash flow valuation using our interactive tools (there is a “discounted cash flow analysis” link just under the company name on the company page). We have populated our model with a mixture of consensus analyst estimates and Valuecruncher estimates. Our analysis produces a valuation of US$161.63 for $AAPL - 1.0% above the current share price. We see $AAPL correctly valued at the moment. But how about compared to a peer group?
Comparison Analysis
I am going to look at two of the metrics we use at Valuecruncher - Enterprise Value (EV)/Revenue and EV/EBITDA.
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
iStockAnalyst will be liable for any loss or damage including without
limitation, indirect or consequential loss or damage, or any loss or damage
whatsoever arising from or arising out of, or in connection with the use of this
information. Please consult your investment advisor before making any investment
decision.