In late 2007, Apple traded at $200 a share after reporting $3.93
in EPS on $24.5 billion in revenue. Turn the pages to 2011 and
it’s an entirely different company. In just four years,
Apple’s earnings have grown 600% to $27.68, and its revenue
skyrocketed 341% to $108.2 billion. That’s the most explosive
4-year growth rate of any large-cap company on the entire S&P 500.
Yet, one wouldn’t know this given the stock’s very
sluggish performance, extremely depressed valuation and the
media’s permanently negative sentiment on the stock over the
past few years.
Zaky makes a compelling, data-backed case that Apple’s stock price is severely undervalued.