BUSINESS/FINANCE NEWS
Setup News Ticker
   BUSINESS/FINANCE NEWS
Searching for 'Should Investors'. (Return)

Yahoo BusinessAug 13, 2020
Is Apple's Lofty Valuation Justified? Analyst Considers the Case
Taking the top spot, Apple (AAPL) is the world's largest company by market cap. Valued at almost $2 trillion, the tech giant keeps swatting away whatever headwinds it encounters.The level of devotion it inspires among its fans is like no other. Mega-cap rivals Microsoft and Amazon might also be considered untouchable titans, but their brands and products do not sparkle with the same aura as Apple's offerings do.That said, should investors be comfortable with how much its valuation has increased recently? Deutsche Bank analyst Jeriel Ong took a look inside Apple's core, to explore why the giant from Cupertino has trounced all standing in its way over the last few years.The analyst lists six reasons why he believes Apple's valuation has expanded so dramatically: "1) S&P500 NTM P/E has expanded from ~17x from 2015-2019 to ~20x year-to-date on average and 23-24x of late; this has provided a tailwind to AAPL; 2) Risks of material unit share loss reduced (iPhone revenues largely stable despite negative preannouncements, iPad and Mac growing steadily); 3) AAPL has increasingly integrated their ecosystem together: 4) AAPL has increasingly shifted revenues/profits to higher services/software mix as a percentage of revenue, and as a result has a more consistent/stable margin outlook; 5) Wearables has risen driven by Watch/AirPods; 6) Shareholder return strategy increasingly valued."Pertaining to point three, Ong highlights what might be the most telling insight of all. Apple is not an iPhone company, b
TRENDING TAGS
Stockmarket Record Today Buy S&P
CoronavirusVaccine Latest Cases Live Trump
AppleFortnite App Google Epic Store
COVID-19vaccine Novavax symptoms order pandemic
pandemicduring Covid-19 amid One Coronavirus
RetailSales July Rise 12% retailer
SalesRetail July Rise 12% Stock
StocksRecord Buy Close S&P High
Marketstock Stocks Apple MarketWatch record
ChinaAberdeen warns delistings ‘dramatic valuations

NEWS SOURCES
Top News (Business News)
Accounting Today
AdWeek News
Banking Business Review
Barron's This Week Magazine
Barron's Up and Down Wall Street Daily
Brad Ideas
Chicago Tribune Business News
CNBC Business
CNBC Economy
CNBC Finance
CNN/Money
CNN/Money Real Estate News
Dismal.com: Analysis
Dismal.com: Indicators
Enterprise Application News
Entrepreneur.com
Forbes Headlines
Forbes Social Media News
FT.com - China, Economy & Trade
FT.com - Financial Markets
FT.com - Hedge Funds
FT.com - Telecoms
FT.com - US
Google Business News
Google Market News
HBS Working Knowledge
Inc.com
INSEAD Knowledge
International Tax Review
Kiplinger
Knowledge@Wharton
L.S. Starrett News
MarketWatch
MarketWatch Breaking News
MarketWatch MarketPulse
McKinsey Quarterly
MSNBC.com: Business
Nielsen Trends
NonProfit Times
NPR Topics: Business
NYTimes Business
OpinionJournal.com
Private Equity Breaking News
Reuters Business
Reuters Company News
Reuters Money
SEC.gov Updates: News Digest
SHRM HR News
Tax Policy News
The Economist International News
The Motley Fool
USA Today Money
Wall Street Journal US Business
Wall Street Transcript
Washington Post Business
WSJ Asia
WSJ Europe
WSJ MoneyBeat
WSJ Opinion
WSJ US News
WSJ World Markets
Yahoo Business
  • CEOExpress
  • 1 Boston Place | Suite 2600
    Boston MA 02108
  • 617 482 1200
    617 299 8649 (fax)
  • Contact
  • As an Amazon Associate
    CEOExpress earns from
    qualifying purchases.

©1999-2020 CEOExpress Company LLC