Apple posted another set of record financials but Jim Cramer thinks the company is worth $300 a share instead of $200. Liz Gurdus:
Cramer lamented the fact that Apple is valued like a “sturdy, cyclical industrial” at just over 17 times next year’s earnings estimates. Instead, he said, it should be on par with top consumer goods stocks, which tend to trade at mid-20s multiples.
How so? Cramer:
In fact, [Apple] should be covered by the same analysts that cover a Procter & Gamble, a Clorox, a PepsiCo, a Colgate, because if it were, I could argue it should be valued at well north of $280 instead of about $200, where it is right now
Isn’t it too late to buy when Apple is around $200?
No, it is not too late to own Apple. Apple the tech stock, maybe, but Apple the consumer products company? That deserves to trade so much higher. Let’s just say own it, don’t trade it, and buy it if you don’t.
PED: “Fire all the Apple analysts.”