Is Apple Inc. (AAPL) Really Facing a ‘Radical Global Slowdown’?

Still, if investors do need that proverbial “carrot” that will push shares back to the valuation they so rightfully deserve, Gene Munster, arguably the most respected Apple analyst on Wall Street, is arguing that it will be the TV. In a note to investors a few days ago, Munster explained why he still holds his $900 price target on the stock (see his full analysis here), mentioning that:

“The bottom line is that we believe AAPL needs something that investors can look forward to in the numbers for the stock to work well. […] We are more optimistic about 2013 as we believe Apple will not only launch a television, but also a lower priced iPhone for pre-paid markets in 2014 or potentially sooner.”

Obviously, a “lower priced iPhone” is an intriguing prospect as well, but over the next twelve months, the best chance Apple has at capturing back its old charm is with the announcement of an entry into the living room.

In comparison to its competitors, this would give Apple Inc. (NASDAQ:AAPL) a leg-up as well; Microsoft has been rumored to be working on three new iterations of its Surface tablet (see the full story of Microsoft’s newest Surface tablets), while Google is making headway with the well-known Project Glass, but a TV would be the most practical entry for any of the tech players to make.

As Munster mentions in his analysis, Apple “needs something that investors can look forward to,” and once it has this, there’s no reason to believe that it won’t trade on par with the likes of Microsoft or Google, whether on an earnings basis or even a cash flow basis. Sitting on a cash pile roughly $120 billion high, shares of Apple currently trade at a mere 12 times free cash, far below Google (18.7X) and just slightly above Microsoft (10.3X). Qualcomm, some bearish investors’ “supply-chain alternative” to Apple Inc. (NASDAQ:AAPL), also trades at free cash premium to the stock by nearly threefold.

With all of this information in mind, the rational action for value-seeking investors to take would be to buy in bulk, and we have a hard time disagreeing. Let us know your thoughts in the comments section below, and for more Apple coverage, check these out:

Apple’s ‘iTV’ Could Add $4.50 to EPS: Analyst

How Does Jim Cramer Feel About Cupertino?

Apple iPhone 5 Selling at a Discount in Wal-Mart Stores