Apple’s Valuation in 2007 – Part Art and Part Science
July 1, 2020 Leave a comment
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Global Investment Advisor & Portfolio Manager
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rob@karriasset.com.au
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rob zdravevski's blog 
In 2007, Apple was trading at $25 per share and it has a Price to Earnings (P/E) Ratio of 38.
Many may have thought the stock was expensive and that the company was possibly going mad.
Apple was about to compete with Nokia, Motorola, Siemens, Blackberry & Sony Ericsson and produce a mobile phone.
The first iPhone was released on June 29, 2007.
Well, earnings grew as did the stock price and the P/E ratio dropped.
Finding a bargain doesn’t always mean a low P/E ratio.
In Apple’s case, investors were looking at what the earnings were going to be, rather than what they have been.
Today, the stock price is $365 and its P/E is 30.
1 July 2020
by Rob Zdravevski
rob@karriasset.com.au