Philip Elmer-DeWitt for Apple 2.0 at Fortune:
Amazon, which reported its June earnings on Friday, hasn’t turned a profit for three quarters in a row — a performance that Wall Street rewarded by pushing its stock to an all-time-high
Apple’s P/E ratio is around 10 or 11…Amazon’s is at infinity – read: isn’t measured anymore, but it was around 2800 at the end of last year.
Read the whole thing at the source link. It’s interesting, especially the graphs.
Amazon’s P/E is around 4.000. Apple’s is at around 10.
If Apple would be treated by Wall Street like Amazon, it’s stock prize would be about 160.000 USD a piece (no, that’s not a typo), and it would be worth …um… 150 TRILLION dollars!
Apple makes more profit each quarter than Amazon EVER made – all quarters combined. Ever.
If you apply Google’s P/E to Apple, Apple’s stock would trade at around 1.000 USD a pop. It’s market valuation would be a cool 1 Trillion USD.
Just sayin’…
Just to get this straight:
Apple posted a 7 billion increase in revenues (to the year ago quarter), a 1.5 billion profit increase (again, y/o/y), and a net profit of 8.8 billion in twelve weeks, record-breaking iPad sales, a substantial increase in iPhone and Mac sales (y/o/y), beat their own guidance, gross margin is up, and they still have (by a huge margin) the best selling tablet, smartphone, and media player, plus 117 billion in cash on hand, but Wall Street is disappointed? Ok.
In case it wasn’t clear before: Analysts aren’t worth a penny, neither are most writers/bloggers.
I know Apple has to play this game, because they’re a public company, and I know that the stock price reflects future expectations, but come on…think about those numbers for a second.
Do you know of any other company that is so grossly under-valued?
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