This Is Why Apple Is Undervalued at $500 a Share

By Chris Hill | More Articles
February 13, 2012 | Comments (2)

The following video is part of today's MarketFoolery podcast, in which host Chris Hill, senior analyst Jason Moser, and advisor Jeff Fischer discuss the latest business news. While Apple made headlines for recent lawsuits against both Motorola Mobility and Samsung, it made even bigger headlines on Monday, when shares crossed the $500 mark. In this segment, the guys share why they believe Apple's legal strategy is a smart one. They also analyze why, despite hitting $500, Apple's stock is at a more attractive valuation today than several years ago, when it was selling for much less.

One of the keys for companies like Apple is being able to expand into, and eventually dominate, emerging markets. The Motley Fool highlights companies that are doing just that in a brand-new free report, "3 American Companies Set to Dominate the World." You can get instant access to the names of these companies simply by clicking here -- it's free.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Chris Hill owns no shares of any of the companies mentioned. The Motley Fool owns shares of Google, Qualcomm, and Apple. Motley Fool newsletter services have recommended buying shares of InterDigital, Google, and Apple and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Report this Comment On February 13, 2012, at 9:10 PM, ConstableOdo wrote:

I sure enjoy hearing that Apple is undervalued as opposed to those naysayers continually claiming that shareholders should sell Apple before the bubble bursts. I'm not sure if Apple will ever be worth $700, but certainly $550 within the next twelve months seems doable. It's good to see investors loosening their pursestrings and pouring some money into Apple over the last month or so. I do hope this Apple sentiment lasts a little longer.
Report this Comment On February 14, 2012, at 5:46 PM, jdwelch62 wrote:

I think if Tim Cook and the Board get around to instituting a dividend, you'll see a (another) big boost in the share price, and it'll then have some staying-power at that level, Odo...

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