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Stocks A / Apple


Subject:  Re: Why, why, why... Date:  2/25/2021  3:04 AM
Author:  platykurtic Number:  209641 of 209688

It's a 34 PE ratio stock at current pricing. For an absolutely massive company with medium-term sales growth of between 2.3% (5-yr) & 6.2% (3-yr) a year and potentially facing market saturation issues (deployment of smartphones throughout the world's population is mostly done now) & net income growth less than that ... it doesn't seem a real value play. EPS growth is (substantially) higher than sales & income growth, however EPS growth *should* be somewhat discounted as AAPL is only a poor capital deployment decision (for example actually building an Apple Car using Apple's capital because regular car companies won't) away from removing that advantage. Mr. Cook's hints about increased dividend payouts are a good sign, although AAPL's current dividend is hardly generous.

So AAPL at current prices doesn't appear particularly lowly priced, it could even be expensive. It's definitely not the deal it was a year ago (at about 1/2 the price) for example and while this quarters' sales trends appear 'good' it's not a given that this will remain throughout the rest of the year (is there an iPhone 5G bump for example, resulting in a iPhone 13 sales reduction). So overall a correction from recent highs shouldn't be much of a surprise.

(Note: All figures from AAII's SI-Pro database.)
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