At this moment (November 8, 2010, just after lunch EST), Apple's stock is hovering at just under US$319.00 a share on the NASDAQ exchange. That's a healthy chunk of change for a share in a healthy company — but some financial analysts think it's underpriced.
Trefis, for instance, not only believes a price of US$400.00/share is about right — they're convinced that US$500.00/share is not unreasonable, either.
Here's how they break it down: the US$400.00/share price is based on the iPhone division covering almost half of the share's value. Cash-on-hand accounts for another 14%, while the balance is spread out between Macs, iPads, iTunes, apps, Apple TV, and iPods — in that order.
Now, to actually get to the US$400.00/share price, Apple's slice of the worldwide mobile market — currently a modest 4% — would have to jump to 14%. Bump that market share up to 17%, on the other hand, and the share price increases by US$55.00.
Similarly, iPad sales would have to literally explode in the next two years: 90 million units sold by 2012 would add another US$45.00 to the share price. That's where the US$500.00/share price expectation comes from.
[Via CNN Money]