Apple Inc. (AAPL): Why It Is a Value Play

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Valuation
Bigger payouts may help focus attention on Apple’s valuation. The shares are trading at under 10 times earnings and on a prospective yield of nearly 3%, if the new quarterly dividend is maintained. That’s pretty cheap for a steady-state business, but Apple Inc. (NASDAQ:AAPL) is still an ideas factory and a pause in new product announcements doesn’t mean product innovation has come to a standstill.

So patience should see a decent upside. The market’s obsession with quarterly results is an imperfection. That’s a value-investing approach.

The article Why Apple Is a Value Play originally appeared on Fool.com.

Fool contributor Tony Reading has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple.

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