Nine charts, with commentary, by friend-of-the-blog Jeff F:
- Institutional ownership of AAPL continues to lag. I believe this is factor explaining the higher P/E ratios of the others, excluding AMZN (institutions are likely wary that its valuation has gotten ahead of itself).
- Five Year EPS Growth rates need to be updated by Wall Street for Apple’s expected large share buyback on the order of $100- $150B. Tax rates will also boost these growth metrics, but that’s a relative issue, as all companies are impacted. Not incidentally, Apple is scheduled to report a 30% YOY increase in net income for the March 2018 quarter.
- Even assuming Wall Street growth rates are correct, it’s hard to see how they explain the P/E ratios assigned to AMZN, GOOG and MSFT, and the resulting share prices.
- Given Apple’s stated commitment of getting to cash neutral, Apple is going to have to purchase far more shares than what WS is currently anticipated to announce on May 1 ($100B). Although I did not chart it here, Apple’s cash is still king, reporting the highest amount of cash as a % of share price in the group.