Saturday, April 24, 2010

AAPL's 12-Month Trailing EPS and Revised P/E Multiple

Following the release of Apple's FQ2 performance earlier this week I have the company's trailing 12-month eps at $11.78 per share and the p/e multiple at Friday's closing price of $270.83 at 23 times trailing 12-month earnings. 
No matter this week's dramatic share price appreciation, Friday's closing price in my view does not reflect anticipation of strong revenue and earnings growth for the balance of FY 2010 that ends in September.
This low p/e multiple relative to current rates of revenue and earnings growth (32% growth in revenue in the March quarter and eps growth of 86%) suggest the shares should more than hold this week's gains with additional appreciation potential over the next six months as clarity concerning iPad sales is provided and accelerating growth in iTunes-related revenue for Apple becomes more obvious. 

Robert Paul Leitao

1 comment:

  1. I think you typed hastily. "...in my ESTIMATION does not..." and "FY 2010".

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