Apple (AAPL) Super Under Value Stock But Don’t Catch the Falling Knife!

Don’t catch the falling knife although Apple (AAPL) is super under value now. Sarcastically most Analysts have a BUY or OVERWEIGHT call on AAPL but downgrade the target price. You are going to lose money if you just follow blindly the recommendation of the analysts. This is a classic example of combining Fundamental Analysis, Technical Analysis, Analyst Recommendation and the interpretation of Target Price, and develop a Trading Plan or Investment Plan.

Fundamental Analysis

  • Last Traded Price = $439.88
  • Current PE = 9.96
  • Forward PE = 7.73
  • PEG = 0.48
  • P/B = 3.49
  • Current Ratio = 1.50
  • Debt / Equity = 0
  • ROA = 28.54%
  • ROE = 42.84%

Using DCF Valuation Method

  • Intrinsic Value (7% annual growth rate for the next 10 years) = $713.54
  • Intrinsic Value (12% annual growth rate for the next 10 years) = $918.80
  • Operating Cash Flow = $56,728 Million
  • No. of Shares Outstanding = 939.06 Million
  • Beta = 1.08
  • Discount Rate = 5%
  • Debt per Share = 0
  • Cash per Share = $42.40
 
Technical Analysis
  • AAPL breakdown from a Falling Wedge with Price Target of about $400 (short term).
  • AAPL also breakdown from a Head & Shoulders with neckline at $525 and the price target is $350 (long term).
  • Currently AAPL is trading down trend below 20D, 50D and 200D SMA.
 

Last Analysis on AAPL.

Last Intrinsic Calculation for AAPL.

 

Recent Upgrade / Downgrade

24-Jan-13 Reiterated UBS Buy $650 → $600
24-Jan-13 Reiterated RBC Capital Mkts Outperform $725 → $600
24-Jan-13 Reiterated Oppenheimer Outperform $800 → $600
24-Jan-13 Reiterated Mizuho Buy $600 → $575
24-Jan-13 Reiterated ISI Group Strong Buy $710 → $600
24-Jan-13 Reiterated Deutsche Bank Buy $800 → $575
24-Jan-13 Reiterated Barclays Overweight $740 → $575
23-Jan-13 Reiterated FBR Capital Outperform $725 → $675
22-Jan-13 Reiterated UBS Buy $700 → $650
22-Jan-13 Reiterated Monness Crespi & Hardt Buy $750 → $670
16-Jan-13 Reiterated Stifel Nicolaus Buy $825 → $725
07-Jan-13 Reiterated Barclays Overweight $800 → $740
21-Dec-12 Reiterated RBC Capital Mkts Outperform $750 → $725
17-Dec-12 Reiterated Mizuho Buy $750 → $600
17-Dec-12 Reiterated Canaccord Genuity Buy $800 → $750
14-Dec-12 Reiterated UBS Buy $780 → $700

 

Analyst Recommendation

 

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