Apple, with its $50 a share in cash, could earn as much as $17 to $20 a share in 2011, which means the stock is trading at a cheap 12.5 times next year’s earnings. Cramer said even if Apple hits his $300 target, the stock will still be cheap trading at just 15 times earnings.
“That’s less than almost every single growth stock I follow,” Cramer said, “and even less than the S&P 500’s multiple.”
via Jim Cramer Predicts Apple Inc. (NASDAQ:AAPL) will hit $300 a Share | Madd Money.
S&P forecasts the S&P 500 average P/E for 6/30/2010 at 22.57.
Readers of this blog may recall that I noticed Apple’s discounted valuation several times.
A spokesman for Nokia, the world’s top cellphone maker, declined to comment on the sales number, saying the company was pleased with sales, but an executive was more bullish.
“Sales have substantially exceeded expectations,” Alberto Torres, head of Nokia’s solutions business, told the Open Mobile Summit trade conference in London this week.
via Nokia top model N900 sales below 100,000: Gartner | Reuters.
If Alberto Torres’ expectation for a flagship product is substantially less than 100k for a launch quarter, I wonder what disappoints him.