Apple Inc (AAPL)

[fmikehugo]

Lango - "Flawed" is not really the right word.

Their method is transparent, and as a method of valuation I can't argue with it. The difference is the market psychology that attaches to each individual stock. You are right that the odds of seeing a 40% discount are miniscule, because AAPL has a market psychology that defies conventional valuation.

I'm not trading AAPL now but am trying to buy QCOM at or below 36. Very frustrating. Similar psychology. Reminds me of the old "War of the Worlds" where they are looking at the aliens' ship and one says to the other "What's holding it up?!"

In the case of AAPL and QCOM the answer is that people believe. Morningstar can't and doesn't try to value that.