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Apple's new chief executive, John Ternus, has launched the company's first foldable phone, the iPhone Duo, marking a significant step into a competitive market. However, while the stock has been historically resilient, the valuation premium suggests that maintaining current growth rates is crucial for future performance.
John Ternus, Apple’s new chief executive, launched the iPhone Duo foldable phone last week. Photograph: Jason Henry/The New York TimesWednesday’s launch of the foldable iPhone was Ternus’s first big event as chief executive, in the same Steve Jobs Theatre where Apple’s co-founder famously unveiled products with his trademark “one more thing” flourish.
An engineer, Ternus is no Steve Jobs, but neither was Cook, and it didn’t do Apple shares any harm. Apple was already vying with Exxon as the world’s most valuable company when Cook took over in 2011, with a market value of roughly $350 billion . Nvidia is the top dog these days, but Apple shareholders won’t complain, with its shares gaining nearly four times as much as the S&P 500’s 769 per cent over the same period.
Surging energy prices set to exert further pressure on Government Importantly, while revenues surged under Cook, from about $157 billion to an expected $477 billion in 2026, this was only one factor in Apple’s incredible share price run. In 2011, Apple traded on 13 estimated earnings, compared to 33 today. Apple’s current price-to-sales ratio is 10, compared to less than four in 2011. Its current valuation is way above its 10-year average on multiple valuation metrics.
In other words, Apple shares have grown much faster than profits, with valuation expansion doing much of the heavy lifting. Ternus may have an easier job than Cook in one respect, since Apple is an exceptional moneymaking machine.
However, a great company is not necessarily a great stock. Ryanair investors say yes to Michael O’Leary’s €150m pay deal‘It would take a lot to bring me home now’Sharon Horgan on suddenly being single in your 50s: ‘Will I just attract weirdos and freaks? ’I have been left a share of a property in Spain. Where does that leave me on tax?
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