Apple Inc (NASDAQ: AAPL) now leads as the largest company in the world with a market cap of $25 billion, ahead by almost $25 billion over runner up Exxon Mobil (NYSE: XOM). While some may see this as an expensive price to pay for the technology company, Apple trades at a mere 13x PE ratio. Compared to the market multiple of almost 22x. Considering that Apple is one of the top companies in the index and that it is growing faster than most of these other companies, Apple may be seen as cheap on a valuation basis. The company reported $13.87 per share in profit last quarter, beating the street's estimates by almost 39%. Not to mention that the street was already forecasting almost 40% growth for the company over the prior quarter. Investors are always waiting for the so called top, however Apple has many opportunities ahead of itself. The company still has a measly single digit market share in the PCs segment. Macs provide a large supply of revenue for the company as they are one of Apple's priciest products. Since customers who own iPhones, iPads, and iPods realize that their compatibility increases by owning everything Apple related, this Halo effect still leave room to grow for the Mac.
However the Mac has been around for a while and does not offer something revolutionary to customers. That is why Apple is moving strongly into the TV industry and claims that the company has a new user-friendly way of revolutionizing the industry. If Apple can get its arms around the home entertainment business, that will be a clear leg-up for the company's future.
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