Update: As of 10am Central Time, Apple shares are up $14.43 and are trading at $582.53.
Buoyed by Apple’s latest iPad unveiling and the already strong demand for Apple’s next-gen tablet, shares of Apple on Tuesday climbed to all-time closing and intraday highs. At the close of trading on Tuesday, shares of APPL were trading at $568.10, up $16.10 for the day. At it’s highest point, shares of Apple reached $568.18.
And the scary thing is that Apple’s PE ratio is still relatively low at just 16.2. Contrast this with Amazon, which has a low margin high volume business model, and it’s P/E ration of 134.7. Hell, even Netflix has a higher P/E ration than Apple at 25.5.
The reality is that Apple has a lot more room to grow. For as high as it is now, Apple’s current share price doesn’t accurately reflect the company’s potential for growth. Expect a run to $600 before ya know it.