$APP

Explicit claim • strong conviction • basis: growth vs multiple

insanely cheap valuation carrying a PEG ratio that is less than 0.7. That's a whopping 44% lower than the sector median.

Explicit claim • strong conviction • basis: multiple relative

26 times trailing earnings with a 19 times forward earnings. ... Even if the company de accelerates all the way down to that 20% growth rate that the company or the management keeps talking about, the company is still undervalued.

Explicit claim • strong conviction • basis: price target upside

Now, $30 billion plus in free cash flow. Okay, you could get probably a over 20 times multiple. Still won't get you to a trillion dollars, but it gets you quite close. Now, if we're going to have a look at the company right now, it is experiencing a draw down of 57.4% from the 52 week highs. Now, year to date, the stock is down 50%. So, the company has been cut in half. And lo and behold, it is worth $104 billion. Again, it's a 10x from here if they manage to do XYZ or if they manage to generate over $30 billion in free cash flow. He believes the company could be worth $8 trillion because of the multiple the market will give this company.

Explicit claim • strong conviction • basis: drawdown discount

And now let's compare that with what investors are being asked to pay Today the stock is sitting around 22 times estimated 2026 gap earnings and based on the figures we can see it falls down to 17 on 2713 on 2028 numbers and the non-GAAP numbers look cheaper again roughly sitting at 19 1/.5 times Ford earnings versus a 5-year for app that sits above 30. So relative to their own history, this is a dramatically different valuation.