Apple has a market value of 2trn. Last reported earnings 55bn (2019)
Earnings yield = 55,000/2,000,000 = 2.75%. Let's assume they cross 100,000 billion in 10yrs.
100,000/2,000,000 = 5% earnings yield.
If the market did not exist, would you be happy to pay the current valuation of 2trn? to earn 5% yield?
Warren Buffett bought the stock in 2016, when it was 110...
the EPS in 2019 was 11.97
Yield: 11.97/110 = 10.81%... if the market did not exist.. does buffet need to worry? absolutely not...
the above thought process does not exist in the current market, it's irreverent.
I sense we are in the gambling mode..
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