Apple Stock Magic: Are Buybacks Worth Paying Up For?

Apple’s stock valuations are near their most expensive levels of the last ten years.Now consider that today’s valuation premiums are amidst a much higher risk-free bond yield than during most of the previous ten years. Apple’s stock (ticker AAPL) has a market cap of $2.8 trillion. Assuming its price-to-earnings ratio and margins remain stable, Apple must sell nearly $400 billion of products and services each year to keep its share price stable. To fathom that, consider that every man, woman, and child on ...