While this valuation predates the most recent earnings report, I see little reason to revisit it, since the revenue growth and margins that Apple reported are actually in line with what I had used in my valuation.
The only reason to be wary of this IPO outperformer is the valuation and the magnitude of its recent gains, which may give you an argument in favor of waiting to buy and not trying to chase any rallies, but not in favor of selling.
Valuation of real estate holdings has in recent history been problematic for pensions.
FORBES: Pensions Funds: Funding Unsavory Practices of Venture Capitalists (May 1, 2000)
Fundamentally, my valuation figures have changed due to the recent market pop.
FORBES: Handicapping Apple, Intel, Microsoft And Other Key Stocks Reporting Earnings This Week
Priceline has been so hot that a valuation correction may be booked, especially given recent developments in the travel environment.
FORBES: Playing The Fire In Priceline Without Getting Burned
Valuation discounts can help, but based on the recent Tax Court decision in the Estate of James Elkins, perhaps not as much as some might hope.
FORBES: Only Modest Valuation Discounts Allowed On Estate Artwork
It also includes the price-earnings ratio as a basic valuation measure, the earnings growth rate to examine recent growth, and the 52-week relative price strength to highlight stock market performance relative to other companies.
Given the recent solid execution, aggressive growth investors will likely drink to this valuation.
We believe, at present, the stock is trading at a discount to its fundamental valuation due to the negative sentiment surrounding the stock following the recent earnings release.
Before the change in methodology used to determine fair value, the typical portfolio company valuation was equal to the value established by investors at the time of the most recent investment.
FORBES: How GAAP Accounting Rules May Be Damaging To Investors
Careful analysis of the risks associated with its revenue streams almost certainly will mean that the hype and recent growth rates cannot be sustained, and that the initial offering will not be reflective of its valuation going forward.
FORBES: Facebook Valuation: We Don't Know What We Don't Know
应用推荐