Will Apple Inc. (AAPL)’s Nemesis Hit the Mythical $1,000 Mark? – Google Inc (GOOG)

The company has a very low debt equity ratio of 0.31, with long-term debt of only $2.99 billion outstanding. Its ROE on an average for the last three years has been around 16%, which is very good. In short, Google Inc (NASDAQ:GOOG) is financially in an extremely sound position.

Will Apple grow again from its fall?

Apple Inc. (NASDAQ:AAPL)’s stock price fall could have been due to many reasons such as investors’ pessimism, lack of innovative products, and absence of Steve Job’s guidance. The company initially grew on the unexpected successes of its innovative products that would beat all expectations. Investors had the same anticipation later on from launch of new products which made Apple Inc. (NASDAQ:AAPL)’s stock price rise. Moreover till last year everyone wanted a piece of Apple Inc. (NASDAQ:AAPL) that further helped the stock price push above, and we all know what happened.

It might sound crazy but Apple Inc. (NASDAQ:AAPL) is actually trading cheap currently with a P/E ratio of under 10 times. The important thing that needs to be done from the company’s end is to increase its dividends from its current yield of 2% and buy back shares with its huge pile of cash to attract a completely new set of investors towards it. Apple Inc. (NASDAQ:AAPL) has no debt burden and strong fundamentals and still some of its products dominate the market. Investor’s should now invest in the company for dividend and safety rather than huge capital gains.

Final words

Without commenting whether the stock prices of Google Inc (NASDAQ:GOOG) will reach $1000 a share or not I would definitely say that the company is financially sound. With a PEG ratio of 1.2 times and a forward P/E of 15 times, the stock still has a lot of upside potential and even if it reaches the mythical $1,000 mark, it would not be an anomaly.

The article Will Apple’s Nemesis Hit the Mythical $1,000 Mark? originally appeared on Fool.com and is written by tarun bachhawat.

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