Wall Street’s ‘dean of valuation’ says Apple is a ‘cash machine’

Aswath Damodaran


Wall Street’s “dean of valuation,” Aswath Damodaran, says Apple shares are trading at an attractive valuation.

“I think of the four big players: Apple, Alphabet, Facebook and Amazon, Apple is the best value play,” he said on CNBC’s “Squawk Alley” Monday. “It is a cash machine. I never seen a company generate as much cash as Apple has over the last six or seven years.”

He noted how these large technology companies are becoming increasingly more powerful in business.

“I think they are pricing these companies for global domination,” he said. “I think that these companies if you look at them on a year to year basis seem to get stronger as they get larger.”

The professor’s comments on the smartphone maker came after Warren Buffett explained on CNBC early Monday why Berkshire Hathaway has a large investment in Apple stock.

Apple shares were up 2 percent on Monday.

Damodaran is a professor of finance at the New York University Stern School of Business. He is widely regarded as the foremost expert in valuing companies and is often referred to as Wall Street’s “dean of valuation.”