Will Apple Inc. (AAPL) Ever Hit $1,000?

Now let’s compare the revenue-per-share growth of Apple Inc. (NASDAQ:AAPL) against Google and Amazon. Apple’s five-year cumulative revenue-per-share growth since 2008 is a staggering 431.3%, compared to that of Amazon’s 255.1% and Google’s 164.2%.

Revenue Per Share TTM Data by YCharts

What’s even more interesting is that Amazon is getting a P/E multiple of more than 3,000, on consistently falling EPS. Again, this is all about perception.

Amazon’s hardware business hardly makes any money — the company sells hardware mainly to boost its revenue from content business. But what about Amazon’s earnings? We all know at the end of the day that only earnings matter… right?

EPS & PE TTM Data by YCharts

Well, that may not always be true. In today’s uncertain world, investors believe in revenue. It gives them the confidence that earnings will follow. This is the basis of Amazon’s mammoth valuation. But Apple Inc. (NASDAQ:AAPL) has an even more compelling revenue story than Amazon does.

Apple’s revenue growth will most likely slow down. But that hardly matters to me as an investor — I’m watching how Apple is transitioning itself to a totally different business that historically enjoys a higher multiple as a sector.

Apple is a debt-free company with loads of cash in its book. Imagine a 25 P/E on $44 EPS for Apple — at its current state — and wow, that equals a $1,100 share price. That’s not to say the stock will jump there right away — but I believe it’s bound to happen over the long-term. To me, Apple Inc. (NASDAQ:AAPL) is a conviction buy at the current price.

The article Will Apple Ever Hit $1,000? originally appeared on Fool.com and is written by Anindya Batabyal.

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