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Your Valuation
10 June 2008 |
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Valuation Details
| Member: | TheCrunchBlog |
| On: | 22 Jul 2008 |
| Views: | 393 |
| Comments: | 1 |
| Updated: | 35 minutes ago |
| Ticker: | AAPL |
| Market: | NASD |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/07/below-us150-a-share-apple-aapl-looks-a-buy/
Apple (AAPL) Valuation Assumptions
Our assumptions are revenues of US$32.8 billion in 2008 growing to US$50.0 billion in 2010. We have used a flat EBITDA margin of 21% from 2008. We used a terminal growth rate of 5.75%. We used a terminal capital expenditure number of US$1.0 billion. We have used a WACC (discount rate) of 11.0%.
Our analysis incorporates the cash on the Apple balance sheet – Valuecruncher calculates a net debt number.
Apple is a great company with incredibly innovative products that consumers all around the world want desperately. That is a position that must be envied by all their competitors in the technology space and beyond.
Warren Buffett’s famous quote is “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”. At around US$150 a share – in our view Apple fits that criteria.