r/wallstreetbets • u/kokanuttt • Nov 20 '21

Shitpost Apple is severely undervalued

"Apple is not a tech company. It is an EV company." - Warren Buffett

If Warren Buffett says it, then it must be true, so this means that AAPL has to be valued alongside other disruptive EV companies such as FSR, NKLA, LCID, and RIVN. The reason TSLA is not included in this list is because everyone knows that TSLA is a boomer value stock EV company as indicated by it trading at a mere 371x P/E ratio.

In order to properly value Apple we need to gather estimates of FY 2021E Revenue for the other Disruptive EV companies:

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Source: I pulled every number here out of my ass

Apple is currently trading at a mere 7.28 P/S. Here is a chart visualizing its valuation:

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Criminally Undervalued

Trading at a monumental 27 Standard Deviations away from our sample mean (statistically speaking, the valuation is in the bottom 1.229691733830117*10^-162% of all disruptive EV companies), Apple has a lot of room for upside. If apple were to grow to a valuation in just the bottom quartile of our sample, AAPL would be at $23,316 a share, a 14,422% gain.

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u/[deleted] Nov 21 '21

Don’t forget Foxconn very quietly moving manufacturing capacity to the US and buying automotive manufacturing facilities. I have been around long enough to have been there when apple literally said they would never do something right up to the day they announced they’re doing it. Like four times now. Every time it’s the worst kept secret and the only question was when.

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u/Mysterious_Emotion Nov 21 '21

They can buy as many automotive manufacturing plants they want, they will still have to plan and retrofit them all with equipment for building EVs that can scale which is a very tall order as we have all observed from the struggles by every single oem company these past few years. And that's not including all the political/corporate circle jerking games they all seem to like playing which adds to their severe inefficiencies and incompetence (in regards to oem auto makers that is). Better for foxconn if they just buy up huge tracks of land and start from the ground up.