Comments on: Apple Q4 – Bond scenario

By: Apple vs. Samsung – Who’s the daddy now? | Radio Free Mobile

Apple vs. Samsung – Who’s the daddy now? | Radio Free Mobile — Mon, 04 Feb 2013 06:24:47 +0000

[…] back to my Apple bond analysis, for a long-term investor the shares look like they offer incredible value as long as one can […]

By: windsorr

windsorr — Thu, 24 Jan 2013 16:03:32 +0000

No that wont work. Free Cash Flow comes after distributions to share holders so if you only look at that you are leaving out some of the money that is returned to holders of the equity. Cash Flow from operations is a better way to look at it although it is crude. In a steady state as postulated, capex would equal depreciaition and there would be no acquisitions.

This is a back-of-the-fag packet calculation anyway and its just to illustrate a point. using $16bn FCF (this Q’s number) does not make a huge dfference and does not diminish the attractiveness of the concept in my view.

By: allon

allon — Thu, 24 Jan 2013 13:43:02 +0000

If apple were a bond you’d look at the free cash flow and not the operating cash flow. According to yahoo finance appl generated $50bn in operating cash flow in the TTM. that’s before investments in CAPEX and acquisitions.
And that’s before you take into account margin changes/ large acquisitions etc.