Will Apple have the biggest profit in history?
One bullish analyst says the company is trading at very low levels compared with other tech giants.
Brian White of Topeka Capital says the company is on track to have the most profitable year of any company ever -- ever! -- in 2012. That's a pretty wild statement. But it could make sense if Apple delivers a new iPhone, a revolutionary television and a smaller iPad later this year, as many expect.
"We believe Apple is poised to generate the highest annual net income of any publicly traded company ever," White wrote in a new report, according to BGR.
So what does this mean for Apple's market cap, which clocked in at $548 billion Monday? "We believe investors should think of Apple's market cap potential in terms of trillions, not billions," he writes. Whoa.
Here's more from White, according to Barron's:
- He expects profit of $46.2 billion this year. Apple's profit for the fiscal year 2011, which ended Sept. 24, 2011, was nearly $26 billion.
- Apple is trading at 8.4 times White's EPS estimate (ex-cash) for the calendar year 2013.
- That P/E is a fraction of the average for three other tech companies that crossed the $500 billion market cap, including Cisco Systems (CSCO) and Microsoft (MSFT). Those three companies had average P/E ratios of over 80 when they crossed that threshold. (Microsoft owns and publishes Top Stocks, an MSN Money site.)
- Apple is trading below the P/E ratio of 12.2 for 2013 for the Standard & Poor's 500 Index ($INX).
- Apple has grown EPS by 86% per year for the last seven years, and White expects 71% EPS growth in 2012.
The following video shows some of Apple's earliest products now up for auction at Sotheby's. How much will Apple's first computer -- which doesn't look like a computer at all -- sell for?
These "record profits" rightfully belong to those slaves! If it was up to me, I'd use our intelligence assets to seize every penny of those profits and give them to those workers!
You people should be appalled at talking about how wonderful it is that Apple made all that money! What kind of Mammon-worshipping monsters are you!?
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