Saturday, April 28, 2012

Is $AAPL overvalued Part 2, or what does Mr Market know?

Almost exactly three weeks ago (April 5, 2012)  I did a comparative study on Apple versus other large technology companies. The answer was "no", and one of the key pieces of evidence was the following table:


Since then, all of the companies in the list have reported their earnings, and we have the situation as below:


What do we see? Apple had smashed expectations, and at this point its trailing and forward P/E is better than that of all of the other names, except Microsoft, which leads rather narrowly, and which has considerably dimmer growth prospects than Apple. Google has done a good deal better than expected (looking at the old and new P/E figures). Both of their stocks have gone down considerably over the last three weeks. Curiously, the best performer of the bunch (by far) is Amazon, which has a crazy earnings multiple, and worse growth prospects than Apple. What does it all mean? I don't know, but Apple looks even more attractive now.

No comments:

Post a Comment