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Is Apple Terribly Undervalued? A Fund Manager Thinks So

"The stock trades at an extremely depressed valuation that Wall Street isn't taking seriously (8.25 Forward P/E Ratio), the company's growth continues to outpace every large cap company on the entire S&P 500, and the company's growth rate percentage - defying all laws of gravity - continues to accelerate without any sign of abating," Zaky writes.

He blames assaults and negative reporting by publications such as CNBC, Bloomberg, The Street.com or Business Insider for the low valuation: "It's the highly misleading and faulty conclusions drawn from these inconsequential facts that has been so damaging for the stock over the years. If it isn't the Zune iPod Killer, or the Android iPhone Killer, then it's the Amazon Kindle Fire iPad Killer, which amounts to nothing less than the obvious end of Apple. Forget about reporting the actual facts or the news, everything is now editorialized."

Apple's stock is down from a $422 high in late October to about $376, which is enough to make Zaky believe that the stock has been attacked in a "concerted way", which has only gotten worse since Steve Jobs died. "Even though Apple has grown its earnings by 600% in four years, the stock has only risen 81%. And while 81% might seem like a lot, just remember that the company is essentially 7x larger than it was in 2007." According to Zaky, Apple's valuation level is the lowest in almost a decade.

His conclusion? The stock will have to rise rapidly now, just to remain at its "depressed" level. Just to stay where it is right now, the stock would have to climb to $577.72 next year, Zaky estimates.

  • theconsolegamer
    Undervalued? You have to be shitting me! Doesn't Apple's worth is beyond the whole U.S. as a country? You have to be SHITTING ME!
    Reply
  • Dacatak
    Is Apple Terribly Overvalued? A Random Dude Thinks So.
    Reply
  • panders4
    He obviously owns apple stock and has something to gain if people want to buy it.
    Reply
  • resetrsx
    Great! We should all now go out and buy up as many shares as we can!
    Reply
  • gus1991
    theconsolegamerUndervalued? You have to be shitting me! Doesn't Apple's worth is beyond the whole U.S. as a country? You have to be SHITTING ME!
    Dude it's just another Apple fanboy expressing his obsession. lololol
    Reply
  • theconsolegamer
    gus1991Dude it's just another Apple fanboy expressing his obsession. lolololAren't we getting much of this lately?
    Reply
  • jezus53
    It's not undervalued, this is how the people feel about the company. There is no secret ploy to bring down apple stock, people are buying and selling at the value they set Apple to be at. Just because you think it should be more doesn't mean it should be, cause I certainly think around 400 bucks a share is ridiculous. Plus, the economy is still in a slump, gone are the days of $1000+ google stock. He's just butt hurt that he bought stock at over 400 and now it's under.
    Reply
  • Parsian
    i hate the sheeps...
    Reply
  • mcd023
    And here I thought it was overvalued (maybe just their products). But it makes sense if the company is 7x larger than 3yrs ago, but stock increased 81%. You would think it'd be more, maybe like 200%-300% over 3yrs.
    Reply
  • de5_Roy
    'apple thinks it is undervalued.'
    understatement of the year! (right behind 'zambezi is not overhyped'.)
    Reply