April 20, 2013
$APPL shares closed at $390/share on Friday, April 19, 2013.
The market capitalization is $367B.
Shares outstanding are: 939M.
Balance Sheet Cash: $137B.
Last year’s (September Fiscal Year End) earnings per share: $44.15/share.
This year’s estimated earnings per share: $43.58/share.
Current dividend yield = 2.7%
So, $AAPL is trading at (390/43.58) 8.9x forward earnings.
Ex-cash, $AAPL is trading at 5.6x forward earnings.
And, investor sentiment is low primarily due to increased competition and expectations that new products (e.g., slimmer iPad, next generation iPhone) won’t be released until the Fall.
So, is $AAPL ripe for investment?
Calculations:
(Market capitalization – Cash) = ($367B-$137B) = $230B
(Earnings * Shares Outstanding) = ($43.58/share * 939M) = 5.6x
Data Sources:
Barron’s; http://data.cnbc.com/quotes/aapl