Research In Motion Ltd (BBRY): BlackBerry Will be Tastier in the Near Future

Peer comparison

At the current price of around $15 per share, BlackBerry is worth around $7.7 billion. It is cheaply valued at only 3.43 times EV/EBITDA. Google, at around $810 per share, has the total market cap of nearly $267 billion. Google seems to have the most expensive valuation at 14.2 times EV/EBITDA. Apple is the biggest company among the three, with $422 billion in total market cap. At $450 per share, Apple is valued quite cheaply at 6.12 times EV/EBITDA. Interestingly, Apple is the most profitable company with a 33.5% operating margin, while the operating margin of Google is only 26.7%. BlackBerry is generating losses.

My Foolish take

Personally, I think BlackBerry could move upward in the near future, as the market is still valuing it quite cheaply. The same conclusion could be applied to Apple. Apple is the most profitable company among the three but it is valued at only more than 6 times EV multiple. Google, despite a rich valuation, could be considered a long-term investment for patient investors.

The article BlackBerry Will be Tastier in the Near Future originally appeared on Fool.com and is written by Anh HOANG.

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