Barnes & Noble, Inc. (BKS), Apple Inc. (AAPL): Store Closures For Some, And Growth For Others…

Valuation…

For years people have struggled to value Amazon. The company grows exponentially every year, and yet shows very little profit. Compare Barnes and Noble, Apple, or Google’s FCF yields of 12.3%, 11.1%, and 5.3%, respectively, to Amazon’s 0.3%, and Amazon seems dramatically over-priced.

In a recent post by Daniel Sparks, he managed to value Amazon at $270 based on cash from operations projections instead of FCF yield. Moreover, I believe his approach was fairly conservative in nature, and may be a more accurate way of valuing a company with such dramatic growth.

The Foolish Conclusion…

There is stiff competition in today’s society regarding who can capture the most readers. Barnes and Noble is losing ground, but still seems fairly priced. Apple and Google are both valued slightly more expensively than Barnes and Noble, but with the amount of sales they have I don’t see why they shouldn’t perform well. Yes, Apple has declined recently, and uncertainty looms as to how the stock will perform. Apple may prove to be the ultimate dividend stock.

The article Store Closures For Some, And Growth For Others… originally appeared on Fool.com and is written by Tyler Wofford.

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