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Apple, Inc.'s Most Undervalued Asset

Another brand study just ranked Apple (NASDAQ: AAPL  ) at the top. Brand identity firm Brand Finance valued Apple's brand at $104.7 billion. Google came in second with a brand value of $68.2 billion.

There's no question that Apple's brand is a powerful asset for the company. But Fool contributor Daniel Sparks thinks that the market may not fully appreciate the value of this asset. Not only does an intangible asset stemming from brand power provide value today, but it also plays a major role in keeping Apple's customers coming back and continuing to pay premium prices for its products, providing value for tomorrow. In other words, Apple's brand plays a key role in making Apple's business sustainable.

But is this intangible asset fully priced into Apple stock? Daniel takes a closer look in the video below.

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Read/Post Comments (8) | Recommend This Article (2)

Comments from our Foolish Readers

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  • Report this Comment On March 20, 2014, at 5:44 PM, Renee wrote:

    Ofcourse it's priced-in. And overvalued too, if you ask me.

    P/E for Samsung (comparable to Apple): 6.3

    P/E for Apple: 13.1

    Sure, "Apple" is worth something, but to overvalue a company by double?! Give me a break.

  • Report this Comment On March 20, 2014, at 7:52 PM, Jon408 wrote:


    Give you a break indeed. Samsung is to Apple as a single hot dog is to a gourmet meal that lasts a lifetime.

  • Report this Comment On March 20, 2014, at 8:20 PM, Renee wrote:


    Thanks for your insight.

    Before anyone else doubts this, please provide a company that's in a similar industry to Apple, more so than Samsung. Yeah, didn't think so.

    When comparing a company's performance against the industry, you look for its nearest competitors to find out how well it's doing and its value.

    I wasn't saying that Apple is worth the same as Samsung, but their P/E should be similar.

  • Report this Comment On March 20, 2014, at 8:21 PM, Renee wrote:

    ...and incase anyone needs this broken down further, if you calculate AAPL price with a P/E of 6.3, it'll be worth about half as much as it is.

  • Report this Comment On March 20, 2014, at 10:14 PM, UgolinoII wrote:

    If you think apple is a mass market consumer electronics company, then you probably oughtn't to be trying to value companies.

    For me, Samsung's P/E seems to say more about what the market thinks of Samsung.

  • Report this Comment On March 20, 2014, at 11:29 PM, GaryDMN wrote:

    Apple is known for quality and innovation, while Google is known for patent infringement and spying on users. There is a big difference.

  • Report this Comment On March 21, 2014, at 2:03 AM, deasystems wrote:

    @Renee: "… please provide a company that's in a similar industry to Apple, more so than Samsung."

    So true, Renee, Samsung and Apple are so much alike. For example, compare Apple's shipyard, insurance, wind turbine, and washing machine businesses to those of Samsung.

    Oh, wait…

  • Report this Comment On March 21, 2014, at 1:29 PM, March10k wrote:

    If you think AAPL is 2x overvalued, I assume you're shorting the stock? Didn't think might have a personal dislike for them, but you're not about to commit financial suicide, either!

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Daniel Sparks

Daniel is a senior technology specialist at The Motley Fool. To get the inside scoop on his coverage of technology companies, follow him on Twitter.

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