Apple would be $18,000 if it traded like Netflix
February 14, 2012, 9:18 AM
Bespoke Investment Group takes Apple’s $500 price as an opportunity to consider how the tech giant is priced compared with other technology and retailing companies.
At $502.50, Apple AAPL 1.86% is trading at 11.8 times expected earnings for the year.
By contrast, the S&P 500 SPX 0.68% is trading at 13.5 times forward earnings, on a weighted basis.
Bespoke also compares Apple’s P/E with a selection of traditional tech stocks such as Intel INTC 0.02% , Cisco CSCO 0.68% , and Yahoo YHOO -0.12% . In those cases, the valuation of Apple ranges from $459 to $803, depending on which P/E you choose to apply.
Bespoke also compares Apple’s P/E with Amazon’s AMZN 3.26% (77.8) which would yield a price for Apple of $3,346.50 a share; and Netflix NFLX -4.54% (422.5) which would put Apple’s price at $17,947.80.