Icahn Says Apple Is ‘Dramatically Undervalued’

Billionaire Carl Icahn is a known Apple bull, but his assessment on what the world’s largest public company should be trading at is still jaw-dropping. Icahn believes the stock should be trading for $240 a share or 18x projected 2016 earnings. Keep in mind, the shares are currently trading at just around $130. Basically, Icahn believes AAPL will be a leader in two categories which other investors/analysts aren’t including in their valuation models. Those two categories are television and automobiles, a combined market of over $2 trillion. Based on Icahn’s estimates, AAPL is trading at just 10.9x projected earnings, compared to 17.4x for the S&P 500. As such, he doesn’t believe the index’s 60% premium over Apple is going to hold. Full letter here: (VIEW LINK)