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Thread: Carl Icahn Has Another Message for Apple Investors

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    What's Jailbreak? Michael Essany's Avatar
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    Default Carl Icahn Has Another Message for Apple Investors


    On Thursday, as shares of AAPL record new all-time highs on Wall Street, billionaire investor and AAPL shareholder Carl Icahn still makes it sounds like the company is a fantastic bargain at current prices.

    With Apple's market cap exploding north of $730 billion and share prices topping $126, Icahn indicates that AAPL is still undervalued in a sense. According to the philanthropist -- and one of Apple's largest shareholders -- the value of AAPL should actually be much, much greater today.

    "In FY 2016 and FY 2017 we forecast in our model EPS growth of over 20% per year, and if Apple introduces a TV in FY 2016 as we expect, this EPS growth accelerates to over 31% per year in our model," a letter from Icahn published this week reads. "Because of this, we believe the market should value Apple at a P/E of at least 20x, which together with net cash of $22 per share, would value Apple shares today at $216 per share. This is not a future price target. $216 is what we think Apple is worth TODAY. Also, to the extent Apple introduces a TV in FY 2016 or FY 2017, we believe this 20x multiple is conservative."

    Although news of Icahn being bullish on AAPL is far from big news, the estimate of Apple's "true value" today is definitely food for thought among investors on the fence about possibly selling shares of AAPL at these high levels. If Icahn is proven correct, the upside potential of AAPL could be nothing short of massive.

    Source: Carl Icahn

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    My iPhone is a Part of Me RandyTG's Avatar
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    If I was considering investing in Apple, I wouldn't do it based on what Ichan says because he only wants the value to go up so that he makes more money. If he had zero money invested in Apple stock I would consider his valuation, but the fact that he keeps prompting Apple to take steps to make his stake worth more makes him a useless source of information for investing in Apple.

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    Livin' the SPIDEY Life SpiderManAPV's Avatar
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    Quote Originally Posted by RandyTG View Post
    If I was considering investing in Apple, I wouldn't do it based on what Ichan says because he only wants the value to go up so that he makes more money. If he had zero money invested in Apple stock I would consider his valuation, but the fact that he keeps prompting Apple to take steps to make his stake worth more makes him a useless source of information for investing in Apple.
    I agree. I'd invest because other reputable sources say so, but not this schemer here.

    ......beware......
    Just your friendly neighborhood Spider-Man!

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