tag:blogger.com,1999:blog-8949322116273441680.post8126182229991523630..comments2024-02-22T00:41:02.797-08:00Comments on Posts At Eventide: Apple's P/E Multiple With And Without Cash In The ValuationRobert Paul Leitaohttp://www.blogger.com/profile/11879679443588605991noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-8949322116273441680.post-81895697524507703182011-04-12T21:00:57.210-07:002011-04-12T21:00:57.210-07:00DT, this is a minor quibble perhaps. But you have...DT, this is a minor quibble perhaps. But you have done so much to hone the accuracy of the metrics, it seems in character.<br /><br />Any company requires a certain minimum level of cash to conduct its normal business operations. Thus, when adjusting share price, I follow a practice of backing out only "excess" cash. In the case of Apple, I have assumed $10B in necessary and the Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8949322116273441680.post-50939043730465153782011-02-27T11:07:46.405-08:002011-02-27T11:07:46.405-08:00I am more conservative and it will play out nicely...I am more conservative and it will play out nicely and make this stock that much more value oriented to own over the long run... I feel the shares will underperform their actual earnings performance. I see an ending price of $450 Dec 31 2011, and $675 on Dec 31 2012. I sure hope so as I own a boat load of Jan 13 $320 calls. <br /><br />I think we will see the PE multiple continue contract... Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8949322116273441680.post-39214741355965726682011-02-02T21:00:32.668-08:002011-02-02T21:00:32.668-08:00JonathanU:
Over the past few quarters interest or...JonathanU:<br /><br />Over the past few quarters interest or net earnings on the cash and marketable securities have been virtually immaterial to results. As interest rates rise the increasing return on these assets will further boost earnings and will warrant a closer look and an analysis separate from earnings generated from product sales activity. <br /><br />I'm looking forward to that Robert Paul Leitaohttps://www.blogger.com/profile/11879679443588605991noreply@blogger.comtag:blogger.com,1999:blog-8949322116273441680.post-72035741935062780982011-02-02T20:52:28.006-08:002011-02-02T20:52:28.006-08:00Thanks Robert,
You really do make it easy for us...Thanks Robert,<br /><br />You really do make it easy for us southerners. :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8949322116273441680.post-41483160080828900662011-02-02T20:48:15.555-08:002011-02-02T20:48:15.555-08:00Anonymous:
Moderately priced is in the context of...Anonymous:<br /><br />Moderately priced is in the context of the recent historical valuation. The market has not awarded a higher multiple based on expectations of near-term 70% eps growth. The point is no matter the 77% share price gain in a year, the shares remain moderately priced with real prospects for appreciation over the next few weeks and especially as we head toward the end of the MarchRobert Paul Leitaohttps://www.blogger.com/profile/11879679443588605991noreply@blogger.comtag:blogger.com,1999:blog-8949322116273441680.post-38720022729498990752011-02-02T20:42:31.813-08:002011-02-02T20:42:31.813-08:00Jon T:
If Apple's share price appreciation co...Jon T:<br /><br />If Apple's share price appreciation continues to track with eps growth, the share price may approach $700 within 21 months and without an expansion of the nominal p/e multiple from today's level. <br /><br />The p/e multiple is not my concern at this time of extraordinary eps growth. There's plenty of share price appreciation potential and I remain focused on the Robert Paul Leitaohttps://www.blogger.com/profile/11879679443588605991noreply@blogger.comtag:blogger.com,1999:blog-8949322116273441680.post-38137795967420361542011-02-02T10:21:13.470-08:002011-02-02T10:21:13.470-08:00Great post Robert.
Just for future reference, hav...Great post Robert.<br /><br />Just for future reference, have you subtracted the effects of the cash on the balance sheet on Apple's earnings to get the cash adjusted P/E multiple? Ie did you subtract the OI&E from net income and then divide by number of outstanding shares to get your cash adjusted earnings per share figure? <br /><br />The only reason I ask is that it might be useful JonathanUnoreply@blogger.comtag:blogger.com,1999:blog-8949322116273441680.post-42591710801889583482011-02-02T05:33:06.024-08:002011-02-02T05:33:06.024-08:00Why do you say Apple remains "moderately"...Why do you say Apple remains "moderately" priced when its actually a dollar below your "Low" price forecast from Nov 14? Just wondering. http://www.postsateventide.com/2010/11/cy-2011-aapl-price-forecasts-and-price.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8949322116273441680.post-34737749834918033022011-02-02T03:37:10.635-08:002011-02-02T03:37:10.635-08:00This seems to support my theory that AAPL will onl...This seems to support my theory that AAPL will only rise retrospectively on results. Investors have stopped believing what they see, and Apple's earning growth continues to run ahead of the market..<br /><br />For evidence look at this chart over at Asymco.com (phenomenal blog btw), which shows what happened to the P/E in '08 and from which it never recovered. <br /><br />I bought in in &Jon Tnoreply@blogger.com