Dear Reader, I hope you enjoy this article. -Vitaliy If you love it, share it with your friends, enemies, and perfect strangers.(they can subscribe here). Sideways Markets, Apple, and Where To Find Value Over the next two weeks, I will share with you a few excerpts from my 25-page summer letter to IMA clients.
Great take, thank you! Just 2 weeks ago I released my coverage on Apple, maybe complementary & interesting via multi-faceted angles & sleek charts! Have a great weekend!
I'm genuinely surprised that you user such an antiquated idea like earnings power to value Apple.
Not only does it ignore the tremendous amounts of free cash flow apple generates and is likely to generate over the next decade
But far more importantly it ignores the tremendous amount of share buybacks they have been doing thereby improving earnings per share even if over all profits stay flat
P s I'm choosing to ignore just how easy it can to be engineer eps growth (short term) atleast for now.
You are welcome to do as you please. I was illustrating the point that Apple is significantly overvalued. Additionally, Apple's free cash flows have been lower than its earnings.
Great take, thank you! Just 2 weeks ago I released my coverage on Apple, maybe complementary & interesting via multi-faceted angles & sleek charts! Have a great weekend!
https://maverickequityresearch.substack.com/p/apple-aapl-the-big-apple-most-valuable
I'm genuinely surprised that you user such an antiquated idea like earnings power to value Apple.
Not only does it ignore the tremendous amounts of free cash flow apple generates and is likely to generate over the next decade
But far more importantly it ignores the tremendous amount of share buybacks they have been doing thereby improving earnings per share even if over all profits stay flat
P s I'm choosing to ignore just how easy it can to be engineer eps growth (short term) atleast for now.
It's a challenge to generate EPS growth through share buyback when your stock is trading at sky-high valuations.
Agreed.
Still doesn't make earnings power a realistic way to value Apple.
I'd rather look at the cashflows just like the farmer at the fair.
P s huge fan of the book after all this time
You are welcome to do as you please. I was illustrating the point that Apple is significantly overvalued. Additionally, Apple's free cash flows have been lower than its earnings.