Apple Valuation Mystery ($AAPL)

How can this stock only be valued at a 12 trailing P/E (9x forward)? Strong management, brand, products and 70% earnings growth past 3 years. Latest quarter shows growth (100% YOY) if anything is increasing. Yes growth must slow at some point, but consider the size of the markets Apple is disrupting and changing - phone, computer, TV. Back out $97 billion of cash sitting in the bank, and AAPL is trading at 9.7 trailing P/E. Mind-boggling with interest rates near zero. 
 It remains a mystery why this isn't a $700 stock, not later this year or next, but right now. In the meantime, I'll just keep buying.     via  money.cnn.com

How can this stock only be valued at a 12 trailing P/E (9x forward)? Strong management, brand, products and 70% earnings growth past 3 years. Latest quarter shows growth (100% YOY) if anything is increasing. Yes growth must slow at some point, but consider the size of the markets Apple is disrupting and changing - phone, computer, TV. Back out $97 billion of cash sitting in the bank, and AAPL is trading at 9.7 trailing P/E. Mind-boggling with interest rates near zero.

It remains a mystery why this isn't a $700 stock, not later this year or next, but right now. In the meantime, I'll just keep buying.

A Cheap and Shiny Apple

" Could Apple be worth $1 trillion? It’s conceivable. The $347 billion maker of iPhones and iPads became — if only briefly — the most valuable company in the United States when it overtook Exxon Mobil on Tuesday. Yet Apple’s sales have been surging 80 percent a year, and its profit faster. What’s more, it trades roughly in line with the growing stock market — and at less than half the price-to-earnings multiple it fetched in 2006, when revenue growth was much slower.."  
  
    NY Times Article    
     
  

"Could Apple be worth $1 trillion? It’s conceivable. The $347 billion maker of iPhones and iPads became — if only briefly — the most valuable company in the United States when it overtook Exxon Mobil on Tuesday. Yet Apple’s sales have been surging 80 percent a year, and its profit faster. What’s more, it trades roughly in line with the growing stock market — and at less than half the price-to-earnings multiple it fetched in 2006, when revenue growth was much slower.."

NY Times Article