Just how much is Apple really worth? The very first thing investors learn about fundamental analysis is that stocks are generally valued on a price-to-earnings ratio, and that a stock's growth rate is what determines the multiple it receives in the analysis. For example, on a traditional trailing 12-month P/E valuation analysis -- where one multiplies Apple's $15 in earnings per share by its 70% growth rate -- Apple (AAPL) 'should be' worth about $1,050 a share on a trailing basis come this October. Yet, as anyone who takes valuation seriously knows, stocks are seldom valued on their trailing P/E ratio.
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