David Trainer: The Man Who Figures Apple Is Worth $240 a Share

Philip Elmer-DeWitt:

I watched Trainer’s CNBC appearance (best line: “Steve Jobs was the Bo Jackson of CEOs”). I read his blog post. I looked up ROIC in Investopedia. I studied his Apple model.

I couldn’t make any sense of it. Maybe you can.

Nope, me neither. (Keep in mind, at the end of last quarter, Apple held $153 worth of cash and investments per share. Just cash. Trainer is saying Apple’s entire future is worth about $90 per share, about $85 billion total.)

Update: Ethan Jewett on Trainer’s weird math and wrong numbers.

Wednesday, 15 May 2013