Apple Shares - Over priced?

Discussion in 'Apple, Inc and Tech Industry' started by BFG, Feb 5, 2007.

  1. BFG macrumors member

    Joined:
    Apr 30, 2005
    #1
    I was looking at apple's share price today, and i was a bit worried that it seems overvalued with hype from the iphone?

    I mean over the last year apple have had amazing returns, but since the launch of the iphone it just seems abit overpriced.

    So my question is: are apple's share prices overvalued?
     
  2. Benjamin macrumors 6502a

    Benjamin

    Joined:
    Oct 27, 2003
    Location:
    Portland, OR
    #2
    actually if you were looking at the graph of trends for the stock you would see the iphone hype has already passed (high of 97.8) .... and stock price has returned to before iphone prices (mid 80s).
     
  3. BFG thread starter macrumors member

    Joined:
    Apr 30, 2005
    #3
    Even so 84.75 (last time i checked) is still abit above the NMP.
    If you look at the P/E ratio thats 30x - which is pretty high, in all respects.

    I dont know the answer to the question so thats why i thought i'd ask and see if anyone could prove if they are over valued.
     
  4. Me1000 macrumors 68000

    Me1000

    Joined:
    Jul 15, 2006
    #4
    I dont think a share can be over priced,

    The whole concept of it being over priced just seems alien to me
    :confused:
     
  5. CEAbiscuit macrumors 6502a

    CEAbiscuit

    Joined:
    Jun 28, 2006
    Location:
    The Kitchen
    #5
    Yes. If you are thinking of selling to make a profit but are not sure, just sell half. :cool:
     
  6. IJ Reilly macrumors P6

    IJ Reilly

    Joined:
    Jul 16, 2002
    Location:
    Palookaville
    #6
    Exactly. The markets decide each and every day whether shares are over or under priced. Also, PE is a pretty much useless number when it comes to valuing a company which is growing as quickly as Apple has over the last few years.
     
  7. BFG thread starter macrumors member

    Joined:
    Apr 30, 2005
    #7
    Well, shares can be over valued; i.e. when some bad news comes out, the share price will drop massively. Just because they are determined my market forces does not mean that overpricing will never occur, because it does - alot.
     
  8. WildCowboy Administrator/Editor

    WildCowboy

    Staff Member

    Joined:
    Jan 20, 2005
    #8
    When the bad news comes out, that's a change in the circumstances. It was fairly valued prior to the release of the news, and it was fairly valued after the news was release, just at different values. It's the basis of a semistrong efficient market.
     
  9. IJ Reilly macrumors P6

    IJ Reilly

    Joined:
    Jul 16, 2002
    Location:
    Palookaville
    #9
    Actually no, because this presupposes knowledge that nobody has at the time. It's an exercise in perfect 20-20 hindsight to claim that a stock was overvalued when it goes down after some bad news comes along. The markets set the value on any given day based on what markets know, or think they know, on any given day.
     

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