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Piper Jaffray: Apple’s ‘valuation not outrageous’

Piper Jaffray on Monday maintained an “outperform” rating for Apple and said valuation of the stock is “not outrageous based on three-year historical average.” The firm said shares are currently trading at 34 times the 2006 earnings-per-share forecast of $2.40 while the average forward price-to-earnings multiple for Apple has been 43 times. “While these multiples may have been based on significantly lower EPS estimates and expectations for future leverage via operating margin expansion, we would also note that these multiples were not factoring in the explosive growth we have seen as Apple has transformed into both a computer hardware company and a provider of products for the consumer digital hub,” Piper Jaffray said.

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