August 25, 2011

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Great Job(s), Now What?

Jobs Resigns as CEO, ValuEngine.com Rates Apple (AAPL,$AAPL) a HOLD
Apple Computer, Inc. designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. Apple shares have seen a remarkable run up in recent years once Apple became more of a consumer products company than a computer manufacturer. The now ubiquitous iPods, iPhones, and iPads, developed as part of Jobs' overall vision for the "digital lifestyle," helped propel the company to a market cap which rivals that of oil giant Exxon-Mobil. Apple shares are down today on the announcement that company founder and all-around product development guru Steve Jobs has resigned as CEO. Jobs' health has been an issue for some time and investors have long questioned whether the company would continue to thrive in his absence. Now, Jobs will be Board Chairman and the new CEO will be long-time Apple executive and current COO Tim Cook. It's time to see if the company is more than one man. ValuEngine has issued a HOLD recommendation for APPLE INC on Aug. 25, 2011. Based on the information we have gathered and our resulting research, we feel that APPLE INC has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE company size and risk, but UNATTRACTIVE market/book ratio and price/sales ratio.

Based on available data as of Aug. 25, 2011, we believe that AAPL should be trading at $460. This makes AAPL 18.22% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For AAPL, we base this on actual earnings per share (EPS) for the previous four quarters of $26.05, forecasted EPS for the next four quarters of $30.95, and correlations to the 30-year Treasury bond yield of 3.61%.
Valuation & Rankings
Valuation 1-M Forecast Return 12-M Return Sharpe Ratio 5-Y Avg Annual Return Volatility Expected EPS Growth Market Cap (billions) Trailing P/E Ratio Forward P/E Ratio PEG Ratio Price/Sales Market/Book Beta Alpha 18.22% undervalued 2.74% 56.79% 0.87 34.26% 39.20% 18.81% 347.87 14.44 12.15 0.77 3.47 5.16 1.30 0.41 Valuation Rank 1-M Forecast Return Rank Momentum Rank Sharpe Ratio Rank 5-Y Avg Annual Rtn Rank Volatility Rank EPS Growth Rank Size Rank Trailing P/E Rank Forward P/E Ratio Rank PEG Ratio Rank Price/Sales Rank Market/Book Rank Beta Rank Alpha Rank 21 17 38 87 51 46 100 63 48 99 99 70 45 69 89

MARKET OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 83.16% 16.84% 52.84% 5.43%

SECTOR OVERVIEW
Sector
Aerospace Auto-Tires-Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Staples Finance Industrial Products Medical Multi-Sector Conglomerates Oils-Energy Retail-Wholesale Transportation Utilities

Change
1.06% 2.72% -0.08% 1.05% 0.17% 2.31% 1.27% 0.56% 1.30% 1.07% 0.85% 0.64% 0.78% 0.47% 0.97% 1.24%

MTD
-11.12% -19.65% -12.45% -12.46% -13.73% -15.89% -13.15% -10.09% -10.11% -13.18% -11.24% -12.95% -16.87% -11.21% -13.50% -4.70%

YTD
2.75% -29.59% -17.21% -9.35% -11.57% -26.27% -12.84% -14.55% -9.75% -13.78% -5.24% -15.24% -17.79% -5.05% -17.21% -2.58%

Valuation
19.23% undervalued 28.53% undervalued 21.01% undervalued 19.46% undervalued 23.68% undervalued 24.92% undervalued 23.15% undervalued 13.31% undervalued 18.69% undervalued 23.90% undervalued 23.09% undervalued 19.79% undervalued 19.47% undervalued 17.97% undervalued 13.09% undervalued 4.74% undervalued

Last 12MReturn
14.85% 15.73% 33.21% 14.02% 15.60% -6.36% 13.83% 9.49% 5.30% 18.37% 9.52% 15.51% 27.23% 22.47% 1.63% 14.21%

P/E Ratio
19.53 15.08 24.29 21.79 37.06 39.07 30.58 17.15 23.4 18.65 28.34 21.47 46.05 22.84 16.72 25.56