I have some sentiments about Apple. I do not know why. The company, it’s founder Steve Jobs, products always made me fascinating. This is pure heroism in business, mind, wonderful way how people can made their life.
I never hold this stock, never bought never sold, in spite that it definitely worth as during past 10 years share price increased 53 times. Not bad. It means that if 10 years ago I would be so smart and bought 1000 shares by $10 each, and spent $10,000 only, I would got more than I earned the same past 10 years in all my great positions (pure money, taxes not included).
Apple fundamentals looks good: book value of equity per share is $144.34, growth rate for a past year was 31.6%. Share price is $524.96 (approximately, four times more!). I am not alone fascinating about Apple.
ROE (return on equity, one of the major determinants of the rate at which a company creates shareholder wealth) were 32.2%, 37.9%, 35.8%, 26.3%.
The average ROE for large U.S. companies is 12%. We can see the difference.
ROA (return on assets, a company's earning power) were 21.7%, 25.4%, 23.2%, 15.7%.
P/B (price-book) ratio were 3.64, 4.6, 4.8, 4.9.
P/E (price-earnings) ratio 12.53 13.5 16.3 28.1
Shares of Apple were up since its last earning release, therefore expectations are the earnings beat estimates.
I am not a big fun to judge a company by its fundamentals. Stock Market is not the Old English Gentlemen club, where, according to stories, you could trust data. The time of “Value investors“, followers of great Graham and Dodd, past away, unfortunately.
Our economy doing very bad today, according to real economic data, but the stocks are flying up. Price balloons, grave remembrances of loses, are blooming today.
Glancing at the charts we can tell that 2013 was not the best year for Apple, stock price fell from $700 to $400 (today it around $530). In spite that last ten years the stock was in uptrend definitely.
Worth to add that currently it is in uptrend also. What happened in Monday will see.
Semion Feldman, independent stock trader