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Technology Stocks : Apple Inc.
AAPL 247.97-0.2%Jan 23 9:30 AM EST
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To: Alomex who wrote (20750)11/13/1998 2:29:00 PM
From: Irish Paddy  Read Replies (2) of 213182
 
Hi Alomex & thread,
I have bought Appl since 1996, sold none. I would define AAPL as a growth stock.Over here we use the PEG ratio as a good indicator of when to buy growth stock.Looking at AAPL fundamentals makes one's mouth water.
Prospective P/E(Sep 99) is 19.6 per Yahoo.Yet when I do the sum I get 17($35/2.05) or 14 if I use the avg estimate of EPS for Sep 99($35/2.47).The 19.6 is obtained using a price of $38 & the lowest prospective EPS for Sep 99.
Anyway taking the PEs I calculate the PEG ratios as follows.
Using 19.6 divided by EPS growth to Sep 99 is 19.6/26.8 = .73
.. 17 = .63
Using 14 = .52
Anything below .75 is a very strong BUY & I am tempted to buy in again except AAPL will become a large % of my portfolio.
One could question the projected growth of EPS to Sep 99 at 26.8%, again from Yahoo.Even if you take a growth of 20% the PEG is .98 or .85 or .70, still very attractive.I suppose you could ask if AAPL can deliver sustainable growth of +20% for the next few years & once again we are back to market share plus new products coming on line.Surely the server market is PC dominated & until the AAPL OS can cross platforms we cannot expect much growth in market share.
By the way where is Eric & Phil, I miss their excellent contributions.
Do anyone know when AAPL will file the last Qtr results with the SEC.
I believe the PEG ratio is a better comparison between growth stocks & it should be on a rolling basis, ie all projections to the same year end.( a lot of sums)
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