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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Keith Feral who wrote (39764)	11/2/2012 5:32:00 PM
From: Walter2012	1 Recommendation Read Replies (1) \| Respond to of 218979

Its the only fundamental metric that could be interpreted as high. Saying that it was/is the highest market cap in history is just hyperbole if it is justified then it doesn't matter that it is the biggest no more than XOM being the biggest for years before it. Even on a market cap basis if you paid roughly 575B for the whole company they netted 26B last year so you would get a 100% pay back on your investment in 20 years a 5.2% return plus a 2% dividend = 7.2%. Not outrageous by any measure. Many people will buy houses and rent them out or self finance for 30 years with similar type returns. Stock is trading 9-10 x next years earnings with a 70% growth rate - no debt 120B in cash. Its not even a market multiple - give me a break. There is no compelling argument that it is wildly overvalued here.