What Is Apple’s (AAPL) Stock Really Worth?

By Feb 6, 2013, 7:01 AM Author's Blog  

In an interview with CNBC’s Scott Wapner, NYU finance professor and valuation expert Aswath Damodaran, who started accumulating Apple (AAPL)’s stock in 1997 at around $5 per share before selling it in April 2012 at $600, said Apple represents a value play and is worth much more than $450 per share.

“This is a company that’s being priced for no growth and compressed margins already, so I don’t understand why the market would react the way it does to news that is, in a sense, is not being built into the stock price,” he said.

Asked by the host why the stock is trading at $450 when it’s worth much more, Damodaran, who is a fan of intrinsic value investing, said that Apple’s pps decline was shaking out a certain type of investor.

“If you’re a value investor, a true value investor, you’ve got to invest when you’re not comfortable,” he said. “Right now, am I comfortable investing in Apple? Not really, but I will invest in it because that’s the time to get into a stock if you’re a value investor.

“I’m going to buy Apple as a business, and I think I’m getting a pretty good business for the price I’m paying.”

Damodaran added that he was not surprised that the stock remained in a holding pattern.

“I think that’s precisely reason now the time, if you’re a value investor, to think about buying the stock,” he said, adding that the market is overly focused on small details, not fundamentals.

Damodaran believes AAPL is worth $600 per share.

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One Comment

  1. Stormin' Morman says:

    He “believes its worth $600″…why? How about digging for more details? In my opinion, AAPL is worth $800/share. Prove me wrong.

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