If we assume that Apple will grow its owner earnings at 5% for the
next 10 years, and then 2% for all years after that (with
adjustments for cash and debt), Apple’s market cap wouldn’t be
$453 billion. It wouldn’t even be $1.2 trillion. It would be $3
trillion. This is a share price of $3,275 in contrast to today’s
share price of $506. At just 5% annual growth for Apple.
That doesn’t mean the market is wrong. It just means the market thinks Apple’s growth is over, that it won’t even manage single-digit growth for the next decade.