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I don't think this changes the valuation of Apple all that much but whenever I read about P/E ratios excluding cash I feel like there should be some way to account for the foreign holdings. Locked up foreign holdings also create some capital allocation issues ... not at Apple necessarily but we did see some of this at Microsoft when Skype was acquired using "foreign cash".

Assuming no change in tax policy, it absolutely does make a substantial difference in Apple's valuation. The value of any business is the discounted value of all distributable cash during the existence of the business. Unless Apple repatriates the money, it can't distribute it.

That being said, I read somewhere recently Apple accounts for the tax it would have to pay when it reports its earnings. I haven't looked that up yet in its official filings. Anyone know about this?
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