An Exercise Showing Apple’s Fair Value To Be Around $300

“AAPL’s Q2 showed sales and earnings, with strong internals for its growth products. AAPL has been emerging as a value stock, and now that it is regaining control of vast amounts of cash, it plans a $110 B buyback ASAP. With routine, 7% growth estimates (global GDP + 1-2%), AAPL can engineer its way without net debt to $22 EPS by 2023. An 18X P/E in 2023 of current-year’s EPS, in line with the P/E of the S&P 500 today, implies a $400 price and an 18% CAGR. Finally, the possibility is raised that AAPL can grow much larger via AR/VR breakthrough products.”

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