Apple 2.0

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Michael Holland on Apple: 'These are crazy numbers'

June 15, 2011: 10:27 AM ET

On Bloomberg TV, the head of Holland & Co. joins the chorus mystified by AAPL's valuation

Source: Bloomberg TV

Michael Holland can't believe Apple (AAPL) is selling for 11 times next year's earnings.

"Apple's not being picked on," he told Bloomberg's Carol Masser Wednesday, "they shouldn't take it personally."

Holland, who worked for J.P. Morgan, Salomon and Oppenheimer before starting his own private investment firm with $4 billion in assets, names Google (GOOG) and Microsoft (MSFT) as two other "great franchises around the world" trading for far less than he believes they are worth. "Particularly," he adds, compared with, "the Zyngas and LinkedIns (LNKD) and all these crazy valuations where there are no earnings."

But for him, Apple is exhibit A.

"Take just the most simple metric for most of the viewers. They understand the price/ earnings multiple. The price you're paying for this year's earnings and next year's earnings. We're talking 13 and 11. It's crazy. Those numbers are below even the most pessimistic growth rates for the near future."

You can see the 6-minute video on Bloomberg's site here or in a Vodpod version below the fold (Flash required) .

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Philip Elmer-Dewitt
Philip Elmer-DeWitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been following Apple since 1982, first for Time Magazine, and now on the Web for

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