AAPL with an EBITDA of 81B and EV or 538B, it has a 6.6x multiple. Plus a PE of 10.42. I would say it is a value stock. It is a great brand and a cash flow generation machine. The question, in my view, is the upside and downside. I think the management is not creating insanely great products that provide a clear upside in value. Whereas, there is the downside that the iphone continues to decrease its market share to a point that may affect its attractiveness as platform and the business become a "winner-take-it-all" one, which I don't expect to happen in the coming years. Therefore, I don't see a clear upside, neither a clear downside in the near future... That being said, even at the current price, I am not sure I want to add AAPL to my portfolio. I try to buy at reasonable prices, provided I expect the business has a clear upside. Note, however, that I am probably the less experienced investor in this forum... :)
Btw, I sold my position and GILD today and added some DAL. Many people has recommended DAL, and I agree it is a great value opportunity with good upside potential. Moreover, today it was trading relatively near its support level. |
