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Apple is Officially Worth More than Microsoft

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Re: Apple is Officially Worth More than Microsoft

#11

Post by j23tom »

ergo98 wrote: post #10
moron4hire wrote: post #8

Consider that Apple's P/E is 24.5 and Microsoft's P/E is 13.4. Basically, while Apple may be in demand right now, Microsoft is earning almost twice as much. Also, Microsoft pays a (albeit small) dividend, whereas Apple does not.

Goldman Sachs has a P/E ratio of 5.94. Microsoft's P/E is heavily "discounted" because it's considered a sort of swan song of easy money (the Windows and Office empire that they've coasted on). Apple's is considered the beginning of things. Stock value today isn't based on today, it's based on "tomorrow".

there is no "tomorrow" for apple. Tomorrow's name is Android

Re: Apple is Officially Worth More than Microsoft

#12

Post by FraaJad »

mootothemax wrote: post #4

Wow, that happened a lot faster than I thought it would. Well, to be honest, I think I wanted Apple to overtake Microsoft more than I ever thought I'd see it happen. I wonder if in a few years from now Facebook'll overtake MS and Apple? ;)

The problem with facebook is it does not produce any value unlike Microsoft and Apple.

Both Apple and Microsoft's product help people create stuff, get things done, entertain themselves. Facebook does a tiny bit of entertaining and socializing, it is no where near MSFT or AAPL in terms of having a tangible impact on people's lives.

Re: Apple is Officially Worth More than Microsoft

#14

Post by FraaJad »

tomlin wrote: post #7

Also: More controlling than Microsoft.

controlling, maybe. MSFT is not the most "controlling" tech company out there (take a look at electronics and automation companies for real tight arsed behaviour)

The problem people had with MSFT is their use of market dominance to kill off competition.

Re: Apple is Officially Worth More than Microsoft

#15

Post by papachito »

ergo98 wrote: post #10
moron4hire wrote: post #8

Consider that Apple's P/E is 24.5 and Microsoft's P/E is 13.4. Basically, while Apple may be in demand right now, Microsoft is earning almost twice as much. Also, Microsoft pays a (albeit small) dividend, whereas Apple does not.

Goldman Sachs has a P/E ratio of 5.94. Microsoft's P/E is heavily "discounted" because it's considered a sort of swan song of easy money (the Windows and Office empire that they've coasted on). Apple's is considered the beginning of things. Stock value today isn't based on today, it's based on "tomorrow".

> Apple's is considered the beginning of things.

Who says that? They could be at the top of their game right now and not see more growth and stabilizing and/or decreasing in the future. There is no way to tell, otherwise you'd be very rich already ;)

> Stock value today isn't based on today, it's based on "tomorrow".

Who says that? Many believe that Apple stocks are overvalued today, that's for sure. Oh, and again, there is no way to tell the future.

Re: Apple is Officially Worth More than Microsoft

#17

Post by jakarta »

moron4hire wrote: post #8

Consider that Apple's P/E is 24.5 and Microsoft's P/E is 13.4. Basically, while Apple may be in demand right now, Microsoft is earning almost twice as much. Also, Microsoft pays a (albeit small) dividend, whereas Apple does not.

the difference implies that the market is assigning a higher multiple to AAPL presumably on the basis of growth. Whether that is warranted or not, I do not know.

I actually think it is more useful to look at these companies from a yield perspective. So if you take the free cash flow / enterprise value of each company you get:

10.8% for MSFT and 6% for AAPL. This is in line with what you said (MSFT producing greater earnings) but presents the data in a more readable manner I think.

Re: Apple is Officially Worth More than Microsoft

#18

Post by CUViper »

FraaJad wrote: post #12
mootothemax wrote: post #4

Wow, that happened a lot faster than I thought it would. Well, to be honest, I think I wanted Apple to overtake Microsoft more than I ever thought I'd see it happen. I wonder if in a few years from now Facebook'll overtake MS and Apple? ;)

The problem with facebook is it does not produce any value unlike Microsoft and Apple. Both Apple and Microsoft's product help people create stuff, get things done, entertain themselves. Facebook does a tiny bit of entertaining and socializing, it is no where near MSFT or AAPL in terms of having a tangible impact on people's lives.

We are social creatures, so products which aid that do have value.

Re: Apple is Officially Worth More than Microsoft

#19

Post by jpablo »

FraaJad wrote: post #12
mootothemax wrote: post #4

Wow, that happened a lot faster than I thought it would. Well, to be honest, I think I wanted Apple to overtake Microsoft more than I ever thought I'd see it happen. I wonder if in a few years from now Facebook'll overtake MS and Apple? ;)

The problem with facebook is it does not produce any value unlike Microsoft and Apple. Both Apple and Microsoft's product help people create stuff, get things done, entertain themselves. Facebook does a tiny bit of entertaining and socializing, it is no where near MSFT or AAPL in terms of having a tangible impact on people's lives.

I'll bet facebook has more impact than Apple. Apple makes your iPod, that let's me listen to music. Facebook creates your social life (for a lot of people it does).

Re: Apple is Officially Worth More than Microsoft

#20

Post by mcav »

papachito wrote: post #15
ergo98 wrote: post #10

Earlier quoted context omitted.

Goldman Sachs has a P/E ratio of 5.94. Microsoft's P/E is heavily "discounted" because it's considered a sort of swan song of easy money (the Windows and Office empire that they've coasted on). Apple's is considered the beginning of things. Stock value today isn't based on today, it's based on "tomorrow".

> Apple's is considered the beginning of things. Who says that? They could be at the top of their game right now and not see more growth and stabilizing and/or decreasing in the future. There is no way to tell, otherwise you'd be very rich already ;) > Stock value today isn't based on today, it's based on "tomorrow". Who says that? Many believe that Apple stocks are overvalued today, that's for sure. Oh, and again, t…

> "They could be at the top of their game right now and not see more growth and stabilizing and/or decreasing in the future."

In the future, anything's possible. But the future is almost always a function of the past, and current trends indicate anything but a decline in Apple's growth.

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