How to accurately determine the value of Apple stock

Nitrozac & Snaggy explain how AAPL stock value is determined.



  • tylernol

    I have a bunch of Apple stock and it is painful to see it at this level compared to late last summer, but then again, it is still the best investment I ever made(invested most in 2000). I am hanging tight. But it is stressful to say the least to see the market sell off so strongly when Apple is still killing it.

    • http://twitter.com/Moeskido Moeskido

      My father-in-law has a good rule of thumb regarding stocks. If it doubles, sell half. The rest is profit. Apple’s one of the few stocks I’ve been able to do that with.

      • tylernol

        A good rule of thumb that I have followed, and I have learned over the years that Apple is a company that people love to claim is doomed and when the doomsaying is at its loudest, time to invest more. Apple was a gamble 12 years ago to invest in, it is now a ridiculously undervalued tech stock with a tremendous amount of growth ahead, not a slow growing behemoth like Exxon.

        • nikolaihoffn

          yep

    • RudyGr

      With a third of its market cap in cash, I think it’s a great value now. Trouble is lots of scared investors and Apple employees bailing ship, which is causing more downward pressure on the stock. It will settle back likely around $500 but like MSFT 10 years ago, it may never recover to its peak of last year.

      • tylernol

        Great time to buy Apple, great time for Apple to buyback more stock, great time to hire new employees with lower stock strike prices.

        There is plenty of growth in the smartphone and tablet market left(especially the tablet market), and with that , a bigger piece of the stagnant PC market as more and more people adopt a Apple-centered ecosystem. Apple will not go the way of Microsoft and go into a decade long earning growth stagnation. I think reading into the flat earnings growth for this quarter is a mistake –lots of new products with lower yields that will improve quickly, improving yields. And investment in their own chip fab which will bring down costs of chips considerably and ramp up capacity.

        Also, dont forget the Apple Television(if there is really a new television product coming). Everyone in the industry is nervous about it, and it is pretty obvious Apple is refining whatever they have until it is ready. That could be a huge growth and recurring subscription revenue engine. If HBO was available on my Apple TV for $10 a month, and Apple got a 30% cut..