Date
20 August 2017
Billionaire investor Carl Icahn says Apple shares still have a long way to go. Photo: Bloomberg
Billionaire investor Carl Icahn says Apple shares still have a long way to go. Photo: Bloomberg

Apple stock still undervalued, says Icahn

Activist investor Carl Icahn feels Apple Inc. shares should be trading at US$216, far above its record high of US$124.92 hit on Wednesday.

Icahn, one of Apple’s top ten investors, said the iPhone maker should be trading at 20 times earnings per share, which taken together with net cash of US$22 per share works out to US$216 per share, Reuters reported. 

“This is why we continue to own approximately 53 million shares worth $6.5 billion, and why we have not sold a single share,” Icahn was quoted as saying in a letter to his Twitter followers.

“Also, to the extent Apple introduces a TV in FY 2016 or FY 2017, we believe this 20X multiple is conservative,” he wrote.

Icahn has long urged Apple, which is currently valued at just over US$700 billion, to buy back more shares and raise its dividend.

Apple had cash reserves of about US$178 billion as of Dec. 27. The company said last April that it will return more than US$130 billion to shareholders by the end of 2015.

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CG/RC

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