Apple stock has been in free fall since
end of last year. It has fallen more than 30% from its 52 week high.
While a detailed analysis would reveal the intrinsic value of the
stock, here are some quick numbers to see if it is a buy.
The Metrics
The Quick Metrics calculation of the stock reveals the following:
| Metric | Apple Stock | Buy/ Hold/ Sell |
|---|---|---|
Price to Earnings
|
8.85
|
Buy
|
Price to Book
|
2.89
|
Sell
|
Profit Margin
|
25.35%
|
Buy
|
Dividend Yield
|
2.5%
|
Buy/ Hold
|
Payout ratio
|
12%
|
Buy
|
Free Cash Flow
|
44B
|
Buy
|
Graham Index
|
9.63
|
Almost Buy
|
Total Current Assets
|
72.3B
|
Buy
|
Current P/E X P/B
|
25.5765
|
Not Yet a Buy
|
An Intelligent Buy
At this point, all numbers indicate
that the stock is nearing a strong buy if it continues to fall. Given
the numbers, the stock would become an “Smart Buy” when the share
price falls to $376.13 per share. Lets see if it falls a little bit
more to get to those levels.
Also, the P/E X P/B needs to be below
22.5 to be an “Intelligent Buy”. That requires a much lower stock
price of $366.3. It is all upto the earnings report, if the stock falls to those levels. Not sure what the chances of that are.
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