Originally Posted by sog35
With 20% growth that would be about $45 EPS.
To reach $700 that would only be a PE of 15.5
Google grew earnings only 20% last year and their PE is 28.
I guarantee if Apple grows earnings 15% the next 2 quarters we will be over $700 split adjusted
Well, do you think they are going to hit $700 a share and STAY at $700 a share?
Here's what's been going on. Apple USED to trade at P/Es in the 20's and even 30's back when they were in HYPERGROWTH mode. But they AREN'T anymore. Now, their new range seems to be as low as 11 and as high as maybe 15, if they are lucky. That P/E ratio will dictate whether the stock is valued properly or if it's undervalued or overvalued.
Now, at 14, it's kind of pushing towards being OVERVALUED and when it's in OVERVALUED state, it doesn't last long. So, a lot of people are trying to figure out what they NEW range is for determining this state.
They took a jump for a day because of the hype around dividends and the 7 to 1 split. Right now, what's Apple trading at? 561 and a P/E of 14+. Now, will it stay there? who knows, we have to see how things get a little normal after the news once people get their head wrapped around yesterday's news. That's what typically happens after news like this.
What I am looking at is more of their new PLATEAU. Hitting a number is one thing, but STAYING at that price as a new plateau is another. I thought that after they do their stock split, it might hit $100, but I HIGHLY doubt it's going to stay long if it does. Time will tell on that one.
Now, if you want to talk about year to year growth rate, tell me over what time period. From today to a year from now? From the end of this fiscal year to the end of the year prior or the next year moving forward. BE VERY SPECIFIC on this, because you tend to confuse things and sometimes THINK I'm saying one thing when I'm not.
I am going to talk about over the next 12 months from TODAY. So, I think they have a likely chance of earnings growth of around 15% to 20% based on what i know, but a lot has to do with how they deal with iPhone production increases due to a spike in demand with them releasing a 5 inch model, refreshing 4 inch models, as well as refreshing other existing products. They CAN do it, it's just WILL they.