Apple is not only cheaper on the basis o f earnings and free cash flow, but also cheaper relative to its growth prospects. And as a cherry on top, it even offers a dividend. Because less than one-quarter of free cash flow is used on the dividend, it both is very safe and has lots of room for growth.
Full Answer
Is Apple stock fairly valued after Q3 results?
Despite Apple’s outstanding fiscal third quarter numbers, reported on July 27, Apple stock ( AAPL) - Get Apple Inc. Report failed to find support. Shares were down -1.2% after the quarterly report, after having dipped another -1.5% on earnings day itself. Some, including BMO Capital’s Tim Long, have argued that AAPL has reached fair valuation.
Is Apple more valuable than Microsoft Corporation?
Moreover, even with Apple's rising valuation, it still trades at a slightly lower multiple than Microsoft, despite higher cash flows and profit margins. While this success will not negate Microsoft's bull case, it gives Apple more potential for higher returns.
Does Apple's New P/E ratio justify its more expensive valuation?
Additionally, its P/E ratio has risen to 33. This stands out, as Apple's multiple struggled to move above 20 before 2020. Still, its 29% net income increase does not match the growth in its P/E ratio during the same time frame. Thus, investors will have to also consider whether Apple now justifies its more expensive valuation.
Is Microsoft's credit rating better than Apple's?
Nonetheless, almost no company, including Apple, matches Microsoft's AAA credit rating. Despite its debt levels, Microsoft has built a track record of financial stability going back to the 1980s.
Why is Apple share price so low?
Apple has fallen during a bad week for equity markets, which are selling off stocks in nearly every industry on fears of Fed rate hikes, weakening consumer confidence, rising inflation and global supply chain challenges.
Why is Google stock so expensive compared to Apple?
This is because businesses depend on websites like Google to market and place advertisements for them. The Internet will be the key to capturing the attention of consumers going forward, and Google is going to keep profiting from this growing trend. Apple easily beats Google in terms of profit margins.
Why is Google's stock price so high?
For years, Google has been growing at a fast clip. Revenues and profits continue to rise at double digit rates. If past history is any predictor of the future, Google remains a good investment. The big risk to the company is regulatory intervention now.
Which stock is better apple or alphabet?
The valuations and verdict. Apple trades at 24 times forward earnings, while Alphabet has a forward price-to-earnings ratio of 20. Apple pays a forward yield of 0.6%, but Alphabet doesn't pay any dividends.
Why does Google pay Apple?
According to one analyst, Google's payment to Apple in 2021 to maintain this status quo may have reached up to $15 billion. This is believed to be the single biggest payment Google makes to anyone, and could account for up to a fifth of Apple's annual profits.
Is Apple a good investment now?
Apple has historically been a good performer, and the analysts seem to agree that the stock is worth buying.
What will Google stock be worth in 5 years?
Based on our forecasts, a long-term increase is expected, the "GOOGL" stock price prognosis for 2027-06-30 is 5199.650 USD. With a 5-year investment, the revenue is expected to be around +129.39%. Your current $100 investment may be up to $229.39 in 2027.
Did Shaq invest in Google?
Shaq invested in Google's 1999 Series A at a $100 million valuation. Today, Google (Alphabet) is worth 1.89 Trillion.
What will Google stock be worth in 2030?
Based on long term forecasts, the price of Alphabet (GOOG) will increase to $3,000 by the end of 2022 then $3,500 in 2023. Alphabet stock will keep rise to $4,500 in 2025, $5,800 in 2027 and $6,800 in 2030.
Does Apple outperform the S&P 500?
Apple has outperformed the S&P 500 for the entire year. At just over $152 a share, Apple stock is still trading just above the $150 area at which buyers have consistently stepped in to send the stock higher several times in the past year-plus.
Is Google going to split?
When Was Google's Stock Split Approved? At the 2022 Annual Shareholder's Meeting on June 1st, GOOGL shareholders approved a 20-for-1 stock split. This means that for every share, shareholders will receive 20 shares at the end of the business day on July 15th.
Is Apple a good buy in 2022?
Apple trades at about 30x our projected 2022 EPS, up from just about 11x in 2016 and around 22x in 2019. We value Apple stock at about $159 per share, marking a discount of about 11% from the current market price.
What is Apple's moat?
Intangible Assets: This includes things like brand value, patents, and regulatory protection. This is Apple's key moat. Its brand is the most valuable in the world , and patents on in-house developed chips are a key differentiator. No moat will ever mean that a business is safe forever.
Is Apple the most valuable company in the world?
It's true , Apple is the largest, most valuable company the world has ever known . With a bump of just 10%, it would become the history's first trillion-dollar organization. But while the law of large numbers does make sense on paper, Apple's not so big compared to its peers that it should necessitate such a discount.
Is Apple too big for its own good?
Apple's simply too big for its own good. Apple isn't growing as fast as the other three. But while these make sense on the surface level, I simply don't think they explain the heart of the matter. There's only one plausible explanation: Apple's moat is nowhere near as wide as those of the other three, and the market knows it.
What is the difference between Google and Apple?
Apple holds approximately 40% of the mobile market, while Google heads 90% of all internet search traffic. Each has its dedicated fanbases, and you likely already made a choice between the two when you purchased your mobile phone.
Why did Apple unencrypt iPhone?
Apple went out of its way in 2016 to portray itself as the hero when the FBI demanded it unencrypt an iPhone to help in the investigation of the San Bernardino terrorist shooting.
Is Financhill stock available for 2020?
Free Stock Tools - Financhill. Close. Yes. No. Apple also has plenty of development coming up for the 2020 holiday season. Its Apple Watch, AirPods, and Beats wearables are selling like hotcakes as people adjust to the close confines of their homes in this new normal.
Is Google a safe bet?
Making things even sweeter, the company has $152.5 billion in total assets and a ton of cash, particularly when compared to its liabilities. No matter what happens in the future, it’s probably a safe bet that Google will find a way to weather the storm.
What is Alphabet Shares?
At the time of this writing, Alphabet shares consist of a combination of Class A (GOOGL) shares and Class C (GOOG) shares. Class A has voting rights, which Class C has no voting rights. The share prices of the two stocks track fairly closely, although investors tend to put a slight premium on the voting shares.
Is there a reason for stock A to be high relative to stock B?
There is no reason for stock A to be high relative to stock B. Stock prices are estimates for a company future success and should be based on market share, total number of shares , and capitalization of the company.
Is Google a Google or Apple?
Google has the resources and the technology to morph into something different but it is not yet clear what. But Apple has a clear roadmap with a lot of upside, it wants to become the product company of the digital age and it changed its name to Apple Inc to reflect that.
Financial fortitude
I'm a long-term investor. When I buy a stock, I'm thinking about where it could be when I retire...30 years from now. So I've accepted the fact that I'll endure more than my fair share of market swoons and economic recessions.
Valuation
Next we have valuation, which is a fancy way of saying we want to figure out which stock is "cheaper" than the other. And for beginning investors, a stock's price is not an accurate reflection of whether it's cheap.
Sustainable competitive advantages
Finally, we have far and away the most important -- and difficult -- thing to measure: sustainable competitive advantages -- or " moats ," as they're referred to in investing circles. Moats are the forces that keep businesses on top of the world for decades, while the competition tries futilely to grab business away.
My winner is..
So there you have it. When these two titans go head-to-head, it's a tie. Whenever that's the case, I always give the edge to the company with the widest moat -- in this case, Alphabet. My own personal portfolio backs this conviction: Alphabet makes up over 10% of my family's real-life holdings.
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Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.
Great business, good valuation
I can not start a debate about Apple stock price and valuations without emphasizing what seems obvious to me. Apple has been executing flawlessly as of late, both during the COVID-19 crisis and through the messy post-pandemic environment of supply chain challenges, limited access to physical stores, etc.
Twitter speaks
Following robust fiscal Q3 earnings that did not propel AAPL forward, the Apple Maven concluded that the stock is attractively valued once again. What is your opinion?
Is the price right?
Looking at a company’s business fundamentals is only half the work needed to find a good stock. How much one pays to own the shares is a key factor in the success of any investment. This is why valuation analysis is so important.
How much did Apple split in 2014?
At the time, Apple was trading above $600 per share. The split brought shares of Apple to about $92 a share .
How much is a Bitcoin worth?
Right now a Bitcoin is worth about $11,000, which means a satoshi is worth about 1/100th of a cent. Almost nothing in your daily life costs a Bitcoin, or a couple of Bitcoins; nothing at all costs a satoshi, or a couple of satoshis.
What happens if Target's bankers don't give a fairness opinion?
You won’t see those, though: If Target’s bankers won’t give it a fairness opinion, then either (1) the deal won’t happen, (2) the price will get negotiated up, (3) the bankers will be told to try harder and will revise their range down, or (4) Target will hire new bankers who will do it.
How many Bitcoins are there in a stock split?
Stock split. The way that Bitcoin works is that there will always be a maximum of 21 million Bitcoins, and if Bitcoin ever becomes the dominant store of value in the world then each of those Bitcoins will be worth an absolute ton of money. Like if you figure the global broad money supply is $90 trillion, then if Bitcoin becomes ...
Is Bitcoin divisible?
Even if it were a little bit divisible, like the dollar—if you could own 0.01 or 0.02 Bitcoins, etc.—it would not be very practical. So the way it works is that Bitcoin is extremely divisible. The smallest unit is one one-hundred-millionth of a Bitcoin, which is called a “ satoshi .”. Even in a world where each Bitcoin is worth $4 million—where, ...
Is Apple stock split?
Apple on Thursday announced in its fiscal third-quarter earnings that the Board of Directors has approved a four-for-one stock split . That means that, for each share of Apple stock that an investor owns, they’ll receive three additional shares. It also makes single shares in Apple more affordable for investors to buy.
