4 ms·
Overvalued based on what metrics?
by pcbro141 5y ago
Overvalued based on what metrics?
- enos_feedler 5y agoPrice/earnings ratio could be one, compared against its own history. However, the company is undergoing a structural change in how they generate earnings (hardware -> software -> services). And the brand is stronger than ever. And the products are stickier than ever. There are also adjacent markets for Apple to run it's iPhone playbook with very high probability of success (tvs, cars, etc). So perhaps a higher P/E is justified. And I give AR/VR a contribution of zero. I think Apple itself will grow into it's P/E quite well, but there are so many other stocks that don't justify their price. For that reason, I've sold out. It's the only position I had the last few years.